Procedures
FAR 9.407-3 mandates fair, transparent suspension procedures, ensuring contractors have the right to respond and agencies follow strict notification and documentation requirements.
Overview
FAR 9.407-3 outlines the procedures agencies must follow when suspending contractors, ensuring due process and fundamental fairness. It details the steps for investigation, notification, decision-making, and record-keeping, as well as the contractor’s rights to respond and contest the suspension. The regulation also covers administrative agreements, voluntary exclusions, and the use of pre-notice letters.
Key Rules
- Investigation and Referral
- Agencies must promptly report, investigate, and refer matters for suspension consideration.
- Decision-Making Process
- Agencies must provide contractors an opportunity to respond to suspensions, including presenting evidence and arguments. If material facts are disputed and not prejudicial to legal proceedings, a hearing with a transcript is required.
- Notice of Suspension
- Contractors must be immediately notified of suspension, its basis, duration, effects, and their rights to respond within 30 days.
- Decision by Suspending and Debarring Official
- Decisions must be based on the administrative record, with written findings for disputed facts, and prompt notification to the contractor.
- Administrative Agreements and Voluntary Exclusions
- Agreements or exclusions must be documented and reported in FAPIIS or SAM within 3 working days, following FOIA procedures for sensitive information.
- Pre-Notice Letter
- Agencies may issue a pre-notice letter before suspension, but it is not mandatory.
Responsibilities
- Contracting Officers: Ensure proper investigation, notification, and documentation; follow agency procedures.
- Contractors: Respond to suspension notices, provide required disclosures, and participate in proceedings as needed.
- Agencies: Maintain fair procedures, timely reporting, and compliance with documentation and notification requirements.
Practical Implications
This section ensures contractors are treated fairly during suspension proceedings and have opportunities to contest actions. It requires agencies to follow structured, transparent processes, reducing the risk of arbitrary suspensions. Contractors must be proactive in responding to notices and providing accurate information to avoid further penalties.