What is Suspension of Government Contractors Definition & Meaning
Suspension Meaning and Definition
Suspension of government contractors usually means that the agency has reasonable evidence to believe that the a contractor or individual has created some level of risk to taxpayer dollars.
The suspension of government contractors and other suppliers is a common process used to protect the best interest of the federal government, its citizens, and taxpayers. This process can involve suspending a contractor or supplier for various reasons such as non-compliance with regulations, failure to fulfill contractual obligations, irregular or improper business practices or other legitimate legal grounds.
The purpose of suspending a contractor or supplier is to prevent further harm to the public by halting any payments until an investigation into potential wrongdoing is completed. Suspension typically lasts up to 30 days but could be extended depending on the scope and nature of the issue at hand. During this period, all payments related to the contract are withheld and appropriate corrective actions may be put in place. Once an investigation has been conducted, it is determined if the suspension should remain in place, be lifted or modified.
The U.S. Congress has the underlying responsibility to make sure that taxpayer dollars are spent well when it comes to federal government contracts.
Therefore, when figuring out what is the suspension of government contractors, it simply means that there is an immediate need for the contracting agency to put a temporary means in place. The reasons for suspension of defense contractors or an individual could be for a pending criminal investigation or an ongoing criminal case. This level of administrative exclusion of defense contractors from doing business with the federal government should serve as a temporary measure.
An attorney can help a government contractor overturn their suspension by providing evidence that the contractor is in compliance with all laws and regulations, that the company is responsible under the legal criteria, as well as filing any necessary appeals or motions. A government contractor debarment and suspension attorney should also be familiar with the relevant rules, procedures and requirements under FAR 9.4 of the suspension process to ensure they are able to properly build a case on behalf of their client. Additionally, attorneys may be able to negotiate settlements or alternative outcomes regarding suspensions such as reduced penalties or extended grace periods. Ultimately, legal counsel provides an important service for those facing a potential suspension from government contracting and can provide invaluable assistance in navigating the complexities of this process. See Ten Commandments to Avoid Contractor Suspension and Debarment.
Per FAR 9.405, Contractors debarred, suspended, or proposed for debarment are excluded from receiving contracts, and agencies shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors, unless the agency head determines that there is a compelling reason for such action.
Notwithstanding the debarment, suspension, or proposed debarment of a contractor, agencies may continue contracts or subcontracts in existence at the time the contractor was debarred, suspended, or proposed for debarment unless the agency head directs otherwise.
Suspension Means
- Immediate Need
- A temporary measure; there is a twelve month limit
- Usually used pending the completion of investigation or legal proceedings
- Based upon adequate evidence, usually an indictment
If you or your company receives a notice of proposed suspension or debarment from government contracts, call our suspension and debarment lawyers for immediate help at 1-866-601-5518.