United States
Environmental Protection
Agency
Office of Solid Waste
and Emergency Response
Publication No.
9200.5-208/FS
Fall 1989
& EPA Debarment and Suspension
Office of Emergency and Remedial Response
Hazardous Site Control Division (OS-220)
Quick Reference Fact Sheet
THIS DOCUMENT
APPLIES TO:
• Remedial Project
Managers
• On-Site Coordinators
• Regional Project
Officers
• All Participants in
Response Actions
Where Contractors
Are Involved
INTRODUCTION
To protect the Government and the public Interest, EPA excludes organizations
or Individuals that do not act responsibly from receiving Federal funds through
assistance and contracting programs. This Is called debarment and suspension, and
is the subject of this document. Debarment and suspension apply to both
procurement programs, such as contracting, and nonprocurement programs, such
as assistance agreements and loans. The document provides the following:
Definitions of debarment and suspension
Authorities for pursuing debarment and suspension
Causes for debarment and suspension
Procedures for debarment and suspension
Requirements of the Drug-Free Workplace Act of 1988.
Debarment and suspension are concerns for participants in the Superfund program,
as well as in all Federal programs.
IMPACT ON
SUPERFUND:
Exclusion of any
party from
participation in
Federal Assistance
Agreements or
Contracts
DEFINITIONS
Federal agencies pursue debarment and suspension to exclude a party from
participating In Federal assistance and contracting programs. When there is
adequate evidence of a serious act or omission, suspension is pursued immediately,
pending completion of investigation or legal proceedings. Suspension proceed-
ings provide for due process, and may include a hearing. Generally, suspension is
temporary and does not exceed 18 months.
Debarment is a longer exclusion from receiving Federal funds. The debarment
process consists of a formal investigation, notification, hearing, and appeals
process. Violations of the Drug-Free Workplace Act requirements can result in
debarment of up to five years, but usually debarment does not exceed three years.
48CFR
Subpart 9.4
Covers TES,
REM, FIT,
ARCS, TAT,
CLP
32
40CFR
Covers
Assistance,
Loan and
Benefit
Programs
40 CFR 35
Covers
Cooperative
Agreements
and Superfund
State Contracts I
AUTHORITIES FOR DEBARMENT AND SUSPENSION
Although the requirements and procedures for both procurement and nonpro-
curement programs are similar, they are handled In separate regulations.
According to Executive Order 12549, Federal agencies must participate in a
Government-wide system for nonprocurement debarment and suspension. EPA's
regulations for nonprocurement debarment and suspension are found at:
• 40 CFR Part 32, Debarment and Suspension Under EPA Assistance,
Loan and Benefit Programs
• 40 CFR Part 35 Subpart O, Interim Final Rule on Cooperative
Agreements and Suoerfund State Contracts for Superfund Response
Actions (Section 35.6560).
Requirements for procurement debarment and suspension are contained in the
Federal Acquisition Regulation at 48 CFR Subpart 9.4.
Printed on Recycled Paper
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CAUSES FOR DEBARMENT AND SUSPENSION
Report Fraud
(202) 475-8025
Conduct Investigation
Many activities can lead to debarment and suspension proceedings. Causes
of debarment and suspension include:
• Fraud in transactions or public contracts
• Antitrust violations
• Embezzlement, theft, forgery, bribery, falsification or destruction of
records, making false statements and receiving stolen property, making
false claims, or obstructing justice
• Poor quality work or willful violations of statutes and regulations,
including violations of the Drug-Free Workplace Act
• Lack of business integrity that seriously and directly affects present
responsibility (for example, EPA takes action for environmental-related
offenses).
PROCEDURES FOR DEBARMENT AND SUSPENSION
If you suspect that suspension and/or debarment are warranted, contact
EPA's Grants Administration Division, Compliance Branch, at (202)475-8025. Be
assured that callers may remain anonymous if desired.
The debarment and suspension process involves several complicated steps.
First, an investigation is coordinated by the Office of the Inspector General, Office
of Regional Counsel, and the Compliance Branch, to determine the facts of the
case. If allegations are substantiated, EPA prepares a complaint memorandum
outlining the action that is sought, describing the essential facts, citing pertinent
authorities, and including necessary documentation. Then EPA issues a notice
containing this complaint memorandum. The respondent has 30 days to request
a hearing, or submit opposition in writing. Next, a hearing is conducted, or the
respondent's written opposition is reviewed. Based on all the available evidence,
the official then writes a decision. At anytime during the process, a settlement can
be reached to protect the interest of the Federal government.
When the decision is final, EPA must notify the General Services Administra-
tion (GSA) of debarred or suspended contractors. GSA compiles, maintains, and
distributes a "List of Parties Excluded From Federal Procurement or Nonprocure-
ment Programs" which EPA and the States must consult when entering assistance
and contracting agreements using Federal money. In addition, there is a limited
appeals process. According to 40 CFRPart 32, either party may request an admin-
istrative appeal within 30 days of the decision. The only appeal under the Federal
Acquisition Regulation is to the U.S. District Court.
Issue Complaint Memo
Conduct Hearing
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CERTIFICATION
To participate in procurement and nonprocurement programs, recipients
must certify that they:
• Are not currently debarred or suspended, or proposed for debarment or
suspension
• Have not been convicted of civil or criminal suits for fraud, white collar
offenses, or antitrust statutes during the previous three years and are
not currently indicted for these offenses
• Have not lost any Federal, State, or local assistance agreements or
contracts for violations or default during the previous three years.
If these certifications cannot be met, the recipient must write a complete
explanation for EPA.
MAJOR REQUIREMENTS OF DRUG-FREE WORKPLACE ACT
OF 1988
The Drug-Free Workplace Act of 1988 became effective on March 18, 1989.
This Act requires that to compete for Federal grants and contracts (equal to or
exceeding $25,000), recipients must certify in advance that they will provide a
drug-free workplace. To comply with this Act, recipients of Federal funds must:
• Publish a statement prohibiting drug abuse in the workplace
• Establish a drug-free awareness program
• Report workplace drug convictions to EPA
• Impose sanctions for employees convicted of workplace drug violations.
If a contractor or grantee fails to provide a drug-free workplace, payments may be
suspended, the contract or assistance agreement may be terminated for default,
and/or debarment and suspension proceedings may be pursued.
ADDITIONAL INFORMATION
Specific contacts are available to provide assistance in three areas:
• General questions: Grants Administration Division (202)475-8025
• Drug-Free Workplace: Grants Administration Division (202)382-5294
• Direct Procurement Under 48 CFR Subpart 9.4: Procurement and Con-
tracts Management Division (202) 382-5020
(
• GSA's "List of Parties Excluded from Federal Procurement and
Nonprocurement Programs":
Procurement Analyst (202)523-4873 (procurement)
Management Analyst (202) 523-4764 (nonprocurement).
For more information on debarment and suspension, consult 40 CFR Part 32,
Debarment and Suspension Under EPA Assistance, Loan and Benefit Programs;
48 CFR Subpart 9.4, FederalAcquisition Regulations; and the Drug-Free Workplace
Act of 1988, Public Law 100-690.
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