Suspension & Debarment Defense

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Suspension or debarment can exclude a company or individual from federal contracts government-wide. The process moves quickly, and the outcome is often decided on the written record. Baker, Cronogue, Tolle & Werfel helps contractors respond to notices, show present responsibility and protect their ability to compete.

How we help

• Responding to show cause letters and notices of proposed debarment
• Presenting evidence of present responsibility to the suspending and debarring official
• Negotiating administrative agreements
• Developing remedial measures and compliance improvements
• Advising on affiliate and individual exclusions
• Challenging exclusions where appropriate

The question is present responsibility

Suspension and debarment are meant to protect the government, not to punish. The suspending and debarring official (SDO) asks whether the contractor is presently responsible, meaning whether the government can trust it to do business today. A strong response focuses on what the company has done since the conduct at issue: investigating it, disciplining those involved, repaying any loss, cooperating with the government and strengthening its ethics and compliance program. The FAR lists these mitigating factors, and SDOs weigh them heavily.

Timing

• A contractor generally has 30 days after receiving a notice of proposed debarment to submit information and argument in opposition.
• A suspension can last up to 12 months while an investigation proceeds, and generally no more than 18 months unless legal proceedings have begun.
• A debarment generally lasts no more than three years, and the contractor may ask the SDO to reduce it.
• While suspended, proposed for debarment or debarred, a company is listed as excluded in SAM and generally cannot receive new federal contracts or subcontracts above the threshold.

Questions clients ask

We received a notice of proposed debarment. How fast do we need to act? Immediately. The response is generally due within 30 days, and the exclusion takes effect when the notice issues, not when the debarment becomes final.

Can we meet with the SDO? Usually yes. Many SDOs will meet with a contractor and its counsel, and a meeting is often the most effective way to show present responsibility.

Can we avoid debarment altogether? Often. Many matters end with the SDO terminating the proceeding or entering an administrative agreement that requires compliance commitments and monitoring instead of debarment.

Related reading: Inspector General Subpoenas: A Guide for Government Contractors and our Regulatory Compliance practice.