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Who is the Army Suspension and Debarment Official (SDO)?
The Secretary of the Army designated The Judge Advocate General, or his General Officer or Senior Executive Service Designee, to act on his behalf regarding suspensions, debarments, and contractor ineligibility. The Judge Advocate General appoints the Army's Suspension and Debarment Official. The Deputy Judge Advocate General is designated to perform the duties of the Army SDO when the Army SDO is unable to act due to conflict, disqualification, or unavailability.
The Army is also the only service with Regional SDOs. The Deputy Staff Judge Advocate for U.S. Army Europe and 7th Army is the SDO for Europe, and the Staff Judge Advocate for U.S. Eighth Army is the SDO for Korea. Army Suspension and Debarment Officials are committed to protecting the overall integrity of the Government procurement process and assuring that our Soldiers and service personnel receive safe, reliable goods and services.
What actions may the SDO take to ensure that the Army does business only with responsible contractors?
Issue a Show Cause Letter. When deemed appropriate, the SDO may provide a show cause letter to a contractor before initiating a suspension or debarment action. The show cause letter generally sets forth a description of the suspected misconduct and provides the contractor an opportunity to explain or otherwise demonstrate that it is a responsible contractor. A show cause letter does not make a contractor ineligible to do business with the United States Government, but it is an advance notice that such an action may be forthcoming.
Suspension. A suspension is a temporary measure that severely restricts a contractor's ability to contract with the Government. The suspension is typically imposed pending completion of an investigation or a judicial proceeding. Suspensions routinely are the result of a criminal indictment, criminal information, or other adequate evidence that a contractor is not responsible. A suspended contractor is placed on the GSA's Excluded Parties List System. Causes for suspension of contractors are found in the Federal Acquisition Regulation. See FAR 9.407.
Proposed Debarment. A proposed debarment is an intermediate action, based either on a conviction, civil judgment, or a preponderance of the evidence establishing cause for debarment. A contractor proposed for debarment is placed on the GSA's Excluded Parties List System. Its ability to engage in Government contracting is severely restricted while it is proposed for debarment. A contractor has very limited due process rights prior to the action, but may submit matters to the SDO and/or request a hearing prior to any final debarment decision. See FAR 9.406.
Debarment. Contractors may be debarred for fraudulent misconduct, violation of antitrust statutes, lack of honesty or integrity, and other causes listed in the Federal Acquisition Regulation. See FAR 9.406-2. Debarment may be based upon a criminal conviction, civil judgment, or a preponderance of the evidence. The ability of debarred contractors to participate in Government contracting is severely restricted. Debarred contractors are also placed on the GSA's Excluded Parties List System for a definite period of time.
Administrative Compliance Agreements. When deemed appropriate, the Suspension and Debarment Official may enter into an Administrative Compliance Agreement with a contractor. The SDO may elect to enter into a Compliance Agreement when he is convinced that, though grounds for debarment may exist, the Government's interests can be protected without debarment. Importantly, the goal of a Compliance Agreement is to educate and cultivate corporate ethics and integrity within a contractor. The Compliance Agreement typically includes rigorous oversight measures that allow the Army the unique ability to scrutinize and monitor contractor operations without restriction. Among the terms and conditions often included in an Army Compliance Agreement are the following: establishment of a robust corporate-wide procurement integrity training program; establishment of an enforceable contractor responsibility program; appointment of an Army-approved ombudsman; reimbursement of Army costs associated with overseeing the Compliance Agreement; establishing a code of corporate ethics; establishing a fraud hotline; and restitution.
When will the Army SDO take action?
Although each individual case is reviewed on its own merit, any one of the following circumstances involving a contractor will usually result in SDO action: 1) an indictment or conviction for certain types of crimes that indicate a lack of business integrity; 2) a preponderance of the evidence establishing that the contractor has seriously failed to perform under one or more Government contracts or subcontracts; that it has violated the "Drug Free Workplace" or "Made in America" Acts; or that it has engaged in certain types of unfair trade practices; or 3) any other serious or compelling circumstance that affects the contractor's present responsibility.
What is contractor responsibility and why is it important?
Contractor responsibility is the ability of the contractor to successfully perform Government contracts and comport itself with the highest standards of integrity and honesty. See FAR 9.104.1. Government contracting must be conducted in a manner above reproach and, except as allowed by law, accomplished with complete impartiality and preferential treatment for none. Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct. See FAR 3.101-1.
Why Does the Army Seek Input from Debarred Contractors?
For contractors that have been debarred by the Army and are nearing the end of their term of debarment, the Army will request information regarding that contractor’s present responsibility. The reason for seeking this input is straightforward. The Army suspension and debarment program is founded on the principles of (1) protecting the integrity of the Government procurement process and (2) assuring that our Soldiers receive safe and reliable goods and services. The Army will conduct business only with responsible contractors. Contractors should explain what corrective measures they have implemented to demonstrate their present responsibility. Debarred contractors should refer to the Contractor Standards of Conduct found at DFARS 203.700 when submitting this information to the Army. Consistent with FAR guidance on the term of debarment, the Army will use this information to assess the present responsibility of that contractor.
What is the purpose of suspension/debarment?
The purpose of suspension/debarment is to protect the integrity of the Federal acquisition process. Just as importantly, the Army's suspension and debarment program is aimed at assuring that our Soldiers and service personnel obtain safe, reliable goods and services. A suspension and debarment program that operates fairly and removes irresponsible contractors from the Federal acquisition process promotes confidence in Government contracting and provides clear notice that contractors who lack integrity or honesty will not be tolerated.
How long is the term of a debarment?
FAR 9.406-4(a) provides that if debarment is imposed, it shall be for a period commensurate with the seriousness of the causes for debarment, which generally should not exceed three years. However, any period of debarment must reflect the best interests of the Government, to include protecting the overall integrity of the Government procurement process. Consequently, consistent with the facts and circumstances of any given matter, the period of debarment may be longer or shorter than three years.
Who is a Government "contractor" for purposes of suspension and debarment?
FAR 9.403 provides that a contractor means any individual who may reasonably be expected to submit offers or be awarded Government contracts. Alternatively, a "contractor" is one who conducts business or may be expected to conduct business with the Government as an agent or representative of a contractor. This definition is extremely broad and may include Government personnel in appropriate circumstances.
What rights does a contractor that is suspended or proposed for debarment have?
Within 30 calendar days after receipt of a notice of suspension or proposed debarment, the contractor may submit, in person, in writing, or through a representative, information and argument in opposition to the suspension or proposed debarment, including any additional specific information that raises a genuine dispute over material facts. The Army SDO decides whether the contractor should be debarred based on the administrative record created prior to the decision.
Does an Army suspension or debarment decision apply outside the Army?
An Army suspension or debarment decision applies throughout the entire Executive Branch of the Government.
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