2024-31403Rule

Federal Acquisition Regulation: Improving Consistency Between Procurement and Nonprocurement Procedures on Suspension and Debarment

Published Date: 1/3/2025

Rule

Summary

Starting January 17, 2025, the DoD, GSA, and NASA are updating rules to make suspension and debarment procedures more consistent across government contracts and other programs. This means contractors and agencies will see clearer, fairer processes with fewer confusing differences. No big cost changes are expected, but everyone involved should get ready for smoother, more aligned rules.

Analyzed Economic Effects

9 provisions identified: 3 benefits, 3 costs, 3 mixed.

Immediate Exclusion Effect Remains

The agencies decided not to remove the immediate exclusionary effect of a notice of proposed debarment under the FAR, so a notice of proposed debarment can have an immediate exclusionary effect in procurement contexts. Contractors remain subject to immediate exclusion when a notice of proposed debarment is applied.

Exclusion Blocks Federal Contracting

Contractors who are debarred, suspended, proposed for debarment, or voluntarily excluded are excluded from receiving contracts and agencies generally shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors unless the agency head finds a compelling reason. This restriction applies Governmentwide.

New Allowed Notice Delivery Methods

Notices of proposed debarment or suspension may be sent by U.S. mail or private delivery service to the last known street address with delivery notification, by email to the SAM point-of-contact or last known email as confirmed by the agency, or by certified mail with return receipt. You should monitor your SAM registration and known email addresses so notices reach you.

Pre-Notice Letters Recognized

The final rule formally recognizes the use of pre-notice letters by suspending and debarring officials as an alternative to immediate exclusion; a pre-notice letter does not immediately result in exclusion or ineligibility. Agencies may use these letters at the SDO's discretion.

Administrative Agreements Public in FAPIIS

An administrative agreement entered to resolve a suspension or debarment proceeding must be reflected in the Federal Awardee Performance and Integrity Information System (FAPIIS) as required by statute. If you enter such an agreement, information about it will be included in FAPIIS.

Rule Effective January 17, 2025

The final rule takes effect on January 17, 2025. If you are a contractor or do business with the Federal Government, you should be ready by that date for the updated suspension and debarment procedures.

Remote Opposition and Deadline Clarification

Agencies may allow contractors to present opposition in person or remotely using technology, and if the suspending and debarring official extends the opportunity to submit materials in opposition, the official should also give a deadline for submission. This affects how and when you can respond to proposed debarment.

When the Official Record Closes

The rule clarifies that the suspending and debarring official's administrative record closes when the contractor's time to submit information and argument in opposition expires, including any extensions. Knowing that date matters because it triggers the next steps in decision-making.

Applies to All Federal Vendors; Small Biz Data

The final rule applies to all entities that do business with the Federal Government. Historical data show that in FY2021 there were 273 small-business exclusions out of 429 total; in FY2022 251/417; and in FY2023 241/392, with a median small-business percentage of 61 percent. The agencies state the rule is not expected to impose new reporting or recordkeeping requirements and is anticipated to improve transparency for small businesses.

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Key Dates

Published Date
Rule Effective
1/3/2025
1/17/2025

Department and Agencies

Department
Independent Agency
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