United States
                     Environmental Protection
                     Agency
                        Office of
                        Solid Waste and
                        Emergency Response
Publication No.
9200.5-208/FSa
October 1991
    <&EPA    Debarment and  Suspension
Office of Emergency and Remedial Response
Hazardous Site Control Division (OS-220W)
                                            Quick Reference Fact Sheet
THIS DOCUMENT
APPLIES TO:

•  Remedial Project
  Managers
•  On-Scene Coordina-
  tors
•  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. Debarmerit 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 immedi-
ately, pending completion of investigation or legal proceedings.   Suspension
proceedings 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, written decision,
and appeals process.  Generally debarments do not exceed three years except for
debarments under the Drug-Free Workplace Act, which do not exceed five years.
48CFR
Subpart 9.4
Covers TES,
REM, FIT,
ARCS, TAT,
CLP
     40 CFR 32
     Covers
     Assistance,
     Loan and
     Benefit
          Covers
          Cooperative
          Agreements
          and Supsrfund
          Stats
          Contracts
        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, Cooperative Agreements and Superfund
      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

                           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).
   Report Fraud
   (202) 260-8025
       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)260-8025. 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 Criminal  Enforcement, Office of Regional Counsel, and/or 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 docu-
mentation. 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 Debarring official then issues a written
decision. At any  time 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 CFR Part 32, either party may request an
administrative appeal within 30 days of the decision. The only appeal under the
Federal Acquisition Regulation is to the U.S. District Court.
Conduct Investigation
   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 com actor or grantee violates the drug-free workplace requirements, payments
may be suspended, the contract or assistance  agreement may be  suspended or
terminated, and/or debarment and suspension proceedings may be pursued.
                    ADDITIONAL INFORMATION

   Specific contacts are available to provide assistance in four areas:

   •   General questions: Grants Administration Division, Compliance Branch
       (202) 260-8025

   •   Drug-Free Workplace: Grants Administration Division, Policy and Proce-
       dures Branch (202) 260-9294

   •   Direct Procurement Under 48 CFR Subpart 9.4: Procurement and
       Contracts Management Division (202) 260-5020

   •   GSA's "List of Parties Excluded from Federal Procurement and
       Nonprocurement Programs":

             Procurement Analyst (202) 501-3566 (procurement)
             Management Analyst (202) 501-4740 (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, Federal Acquisition Regulations; and the Drug-Free Workplace
Act of 1988, Public Law 100-690.

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