Suspension & Debarment Defense

Protecting government contractors from exclusion from federal contracting

The Threat of Debarment

For government contractors, debarment is an existential threat. Being listed in the System for Award Management (SAM.gov) as excluded from federal contracting can destroy a business that depends on government work.

Debarment means:

  • No new prime contracts with federal agencies

  • No new subcontracts under federal contracts

  • Loss of pending contract opportunities

  • Potential termination of existing contracts

  • Reputational damage affecting commercial clients

Suspension is equally damaging:

  • Immediate exclusion pending investigation

  • No notice or hearing before listing

  • Can extend throughout lengthy investigations

  • Same practical effects as debarment

DC Federal Litigation PLLC defends government contractors against suspension and debarment. Early intervention is critical—we work to prevent exclusion before it happens.

Understanding Suspension vs. Debarment

Suspension

Suspension is a temporary exclusion from federal contracting imposed when there is adequate evidence of cause and immediate action is necessary to protect the government's interest.

Characteristics of Suspension:

  • Imposed immediately without prior notice

  • Based on pending investigation or indictment

  • Temporary (but can last years during investigations)

  • No set duration—continues until resolved

  • You can contest but suspension continues pending resolution

Grounds for Suspension:

  • Indictment for offense indicating lack of business integrity

  • Adequate evidence of grounds for debarment

  • Immediate need to protect government interest

Debarment

Debarment is a formal exclusion from federal contracting for a specified period based on findings of misconduct.

Characteristics of Debarment:

  • Follows notice and opportunity to respond

  • Fixed duration (typically three years)

  • Based on findings, not just allegations

  • Can be reduced for cooperation and remedial measures

  • Listed in SAM.gov with debarment term

Grounds for Debarment:

  • Conviction of fraud or criminal offense related to obtaining or performing contracts

  • Violation of antitrust laws

  • Commission of embezzlement, theft, forgery, bribery, falsification, or destruction of records

  • Tax evasion

  • Violation of contract provisions serious enough to warrant debarment

  • Any other cause so serious as to affect responsibility as government contractor

The Debarment Process

Step 1:

Notice of Proposed Debarment

The process begins with a Notice of Proposed Debarment that:

  • Identifies the conduct giving rise to proposed debarment

  • States the causes under FAR 9.406-2

  • Advises of your right to respond

  • Provides deadline for response (typically 30 days)

Step 2:

Show Cause Response

You submit a written response explaining:

  • Why debarment should not be imposed

  • Mitigating circumstances

  • Remedial measures taken

  • Present responsibility

This is your critical opportunity to prevent debarment. A weak response can result in permanent exclusion.

Step 3:

Fact-Finding (If Disputed)

If material facts are genuinely disputed, you may be entitled to a fact-finding proceeding with:

  • Presentation of evidence

  • Witness testimony

  • Opportunity to cross-examine

Step 4:

Debarring Official Decision

The Debarring Official reviews the record and issues a final decision:

  • Debarment with specified term

  • No debarment (termination of proceedings)

  • Reduced debarment period

Step 5:

Administrative Agreement (Alternative)

In some cases, you may negotiate an administrative agreement that:

  • Avoids formal debarment

  • Imposes compliance obligations

  • Requires monitoring

  • Preserves contracting eligibility

Mitigating Factors

The FAR identifies mitigating factors that can reduce or avoid debarment:

Acceptance of Responsibility

Acknowledging wrongdoing and accepting responsibility demonstrates present responsibility. This includes:

  • Admitting the conduct occurred

  • Not blaming others inappropriately

  • Acknowledging harm to the government

Cooperation with Investigation

Full cooperation with government investigations shows good faith:

  • Voluntary disclosure

  • Production of documents

  • Witness availability

  • No obstruction

Remedial Measures

Steps taken to prevent recurrence demonstrate present responsibility:

  • Termination of responsible employees

  • New compliance procedures

  • Enhanced training

  • Management changes

  • Internal controls

Isolated Incident

Demonstrating that misconduct was isolated rather than systemic:

  • No prior violations

  • Strong compliance history

  • Immediate corrective action

Age of Misconduct

Older misconduct may be less relevant to present responsibility:

  • Time since violation

  • Subsequent clean record

  • Changed circumstances

Restitution

Making the government whole demonstrates accountability:

  • Payment of damages

  • Contract completion

  • Return of overpayments

GSA vs. Agency Debarment

Multiple entities can impose debarment. The most significant are:

GSA Debarment

GSA's debarment actions have government-wide effect. GSA has authority to debar contractors from all federal agencies.

Agency Debarment

Individual agencies can impose debarment applicable government-wide. Common debarring officials include:

  • Department of Defense

  • Department of Interior

  • Department of Homeland Security

  • Other agencies with significant procurement authority

Reciprocal Debarment

A debarment by any federal agency generally applies government-wide. Being debarred by one agency means exclusion from contracting with all agencies.

Defense Strategies

Challenge the Facts

If the factual basis for debarment is disputed:

  • Contest the government's evidence

  • Present contrary evidence

  • Request fact-finding hearing

  • Challenge sufficiency of evidence

Argue Against Debarment

Even if facts are established:

  • Emphasize mitigating factors

  • Demonstrate present responsibility

  • Show remedial measures taken

  • Argue for administrative agreement

Limit Debarment Scope

If debarment is unavoidable:

  • Seek shortest possible term

  • Limit to specific divisions or locations

  • Negotiate conditions for early termination

  • Preserve affiliates' eligibility

Challenge Procedurally

Procedural defenses may apply:

  • Lack of proper notice

  • Denial of due process

  • Improper procedures

  • Agency exceeded authority

Our Debarment Defense Services

Pre-Debarment Intervention

When you learn of investigation or impending action:

  • Assess risk and exposure

  • Implement voluntary remedial measures

  • Prepare for potential debarment proceedings

  • Consider voluntary disclosure

Show Cause Response

We prepare comprehensive responses that:

  • Address each allegation specifically

  • Present all mitigating evidence

  • Document remedial measures

  • Argue for present responsibility

Fact-Finding Representation

If fact-finding occurs:

  • Prepare and present witnesses

  • Cross-examine government witnesses

  • Submit documentary evidence

  • Make legal arguments

Administrative Agreement Negotiation

We negotiate agreements that:

  • Avoid formal debarment listing

  • Include achievable compliance requirements

  • Protect ongoing contracts

  • Preserve future opportunities

Appeals and Judicial Review

After adverse decisions:

  • Review grounds for appeal

  • Pursue reconsideration

  • In appropriate cases, seek judicial review

Preventing Debarment: Compliance Best Practices

Compliance Program

Implement a compliance program that includes:

✓ Written code of conduct

✓ Regular training

✓ Reporting mechanisms

✓ Internal monitoring

✓ Prompt corrective action

Voluntary Disclosure

Consider voluntary disclosure when violations are discovered:

✓ May provide credit in debarment proceedings

✓ Can lead to administrative agreement

✓ Demonstrates good faith

✓ May satisfy FAR mandatory disclosure requirements

Prompt Response to Problems

When issues arise:

✓ Investigate promptly

✓ Document findings

✓ Take corrective action

✓ Consider disclosure obligations

Frequently Asked Questions

  • The typical debarment period is three years, but can range from shorter periods to permanent exclusion depending on the severity of misconduct and mitigating factors.

  • Administrative appeals are generally not available under the FAR. However, you may seek reconsideration from the Debarring Official or, in limited circumstances, judicial review in federal court.

  • Suspension continues until the investigation is resolved or the suspension is terminated. There is no fixed maximum, and suspensions can last years during complex investigations.

  • Generally, debarment does not automatically terminate existing contracts. However, agencies may choose to terminate, and you cannot receive new work.

  • No. Criminal charges may support suspension, and conviction may support debarment, but the agency must still make an independent determination. You have the opportunity to present mitigating factors.

  • Debarment can extend to affiliates, subsidiaries, and related entities. The scope depends on facts and can be contested.

Contact Our Debarment Defense Team

If you are facing suspension, debarment, or investigation that may lead to exclusion, contact us immediately. Early intervention is critical.

We handle:

  • Response to Notice of Proposed Debarment

  • Suspension challenges

  • Administrative agreement negotiations

  • Fact-finding hearings

  • Compliance program development

Contact:

Urgent: Request Debarment Defense Consultation

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