Government Contracts

Suspension and Debarment: The Government Contract Risk Some Companies See Too Late

For government contractors, the most serious dispute is not always the largest contract claim. Sometimes the greater risk is eligibility. A payment dispute, performance problem, investigation, agency inquiry, or show-cause issue can become more serious if the government begins questioning whether the contractor remains responsible contractor. That is where suspension and debarment risk enters the picture. Federal Acquisition Rule (FAR) Subpart 9.4 governs debarment, suspension, and ineligibility. It prescribes procedures for suspending and debarring contractors, provides for listing excluded contractors,…