Suspension and Debarment

Federal contractors who require employees to sign confidentiality agreements—including those selling only commercial products or in small quantities—need to examine their agreements closely. For the last two years, the government has sought to prohibit confidentiality agreements that restrict employees’ ability to report fraud, waste, or abuse to “designated investigative or law enforcement representative[s]” for federal agencies authorized to receive that information.”[1]  Most recently, the Department of Defense issued a new class deviation on November 14, 2016 prohibiting DoD from using funds from recent appropriations to contract with companies using overbroad confidentiality agreements.[2]  While these restrictions may not be new, the deviation’s broad application and significant consequences mean that contractors should give close scrutiny to ensure any agreements with employees comply with the prohibition.
Continue Reading Confidentiality Agreements Continue To Pose Potential Compliance Trap for Contractors

Each year, the Interagency Suspension and Debarment Committee (ISDC) reports to Congress on the status of the Federal suspension and debarment system.  With its mission of assisting agencies to build and maintain efficient and effective suspension and debarment activities, the ISDC is uniquely situated to provide comments and insight on the status of suspension and debarment practices generally. 
Continue Reading ISDC Reports a “Plateauing” in Suspension and Debarment Activity

On March 28, 2015, the Department of State (“State”) issued a proposed rule to update various procedural aspects of the agency’s suspension and debarment actions.  The proposed rule appears intended to streamline the suspension and debarment process and reinforce the independence of the agency’s suspension and debarment official (“SDO”).  Yet despite these laudable aims, the proposed rule raises substantial questions about the scope and implementation of the contemplated changes.

The proposed rule would amend the debarment-related portion of the Department of State Acquisition Regulation (“DOSAR”), State’s agency-specific procurement regulations.  While many of the proposed changes are technical or administrative in nature, two are worthy of particular mention.Continue Reading A Job Half-Done? Questions Remain Following State Department’s Announcement of New Debarment Procedures

On March 8, 2016, a final rule changed the position of the National Aeronautics and Space Administration’s (“NASA”) suspending and debarring official (“SDO”).  The SDO had been NASA’s Assistant Administrator for Procurement.  The final rule reassigns the position to NASA’s Deputy General Counsel.  Public comments were not accepted because NASA concluded that the change “affects only the internal operating procedures” of the agency.
Continue Reading A Change to the SDO Position at NASA

Three major agencies—the Department of Defense (“DoD”), NASA, and the General Services Administration (“GSA”)—have published an interim rule that will require contractors to report federal felony convictions and delinquent taxes when responding to solicitations.  The rule implements requirements imposed by the Consolidated and Further Continuing Appropriations Act of 2015, Pub. L. 113-235 (the “CFCAA”) and applies broadly to any procurements with the DoD, NASA, or GSA.  Indeed, the FAR Council declined to exempt procurements for commercial items (including COTS items) or contracts below the simplified acquisition threshold from the reporting requirements, explaining that “[t]ax liability is a serious matter” and that the rule will impose a “minimal burden” on contractors. 
Continue Reading Federal Felony Convictions and Delinquent Taxes Must be Reported Under New FAR Rule