Suspension

Temporary exclusion of a contractor from government contracting pending investigation.

Definition

Suspension is a temporary action taken by a suspending official to exclude a contractor, individual, or organization from government contracting and government-approved subcontracting while an investigation or legal proceeding is pending. Unlike debarment, suspension does not require a final determination of wrongdoing and is typically imposed when immediate action is necessary to protect the government's interest. Suspension is based on adequate evidence of causes such as commission of fraud, criminal offense in connection with government contracts, violation of federal law, or other causes affecting responsibility. Suspensions are generally limited to 12 months but may be extended in certain circumstances. Suspended parties are listed in the System for Award Management (SAM) exclusions database and cannot receive new contracts during the suspension period.

Also Known As

  • Contractor Suspension
  • Temporary Debarment

Examples

Common Mistakes to Avoid

  • Assuming suspension is the same as debarment (different standards and procedures)
  • Not responding properly to suspension notice (affects due process rights)
  • Continuing to perform existing contracts without understanding scope of suspension

Who Should Know This Term

Contractors, compliance officers, legal counsel, ethics officers

Official Source

FAR Subpart 9.4