FAR 25.702-3—Remedies.
Plain-English Summary
FAR 25.702-3 explains the remedies available when a contractor is determined to have made a false certification under FAR 25.702-2, which is the certification requirement tied to the applicable domestic preference or trade-related restriction in this subpart. This section covers three enforcement tools: contract termination by the contracting officer, suspension by the suspending and debarring official, and debarment by the suspending and debarring official for up to 3 years. Its purpose is to give the Government immediate and longer-term remedies when a contractor falsely certifies compliance, protecting the integrity of the procurement system and the underlying statutory restrictions. In practice, this means a false certification can affect both the specific contract at issue and the contractor’s broader eligibility for future awards. The section also points readers to subpart 9.4 for the procedures that must be followed before suspension or debarment can be imposed. For contractors, the practical significance is that inaccurate or unsupported certifications can trigger serious contract and responsibility consequences beyond ordinary contract administration.
Key Rules
False certification triggers remedies
The remedies in this section apply only after a determination that the contractor made a false certification under FAR 25.702-2. The Government must first establish that the certification was false before these enforcement actions are available.
Contract may be terminated
The contracting officer may terminate the contract when a false certification is determined. This gives the Government a contract-level remedy tied directly to the affected procurement.
Suspension is available
The suspending and debarring official may suspend the contractor under subpart 9.4. Suspension is an interim exclusion action used to protect the Government while the matter is addressed.
Debarment may be imposed
The suspending and debarring official may debar the contractor under subpart 9.4 for up to 3 years. Debarment is a serious exclusion action that can bar the contractor from receiving future federal contracts and covered transactions during the debarment period.
Procedures in subpart 9.4 apply
Any suspension or debarment must follow the procedures in FAR subpart 9.4. The remedies are not automatic; the official must use the required due process and administrative procedures.
Responsibilities
Contracting Officer
May terminate the contract after a determination that the contractor made a false certification under FAR 25.702-2. The contracting officer must use the termination authority appropriately and in accordance with the contract and applicable termination procedures.
Suspending and Debarring Official
May suspend the contractor and may debar the contractor for up to 3 years, but only by following the procedures in FAR subpart 9.4. This official is responsible for deciding whether exclusion is warranted and for ensuring the required process is followed.
Contractor
Must ensure certifications are accurate and supported by the facts before submitting them. If a false certification is made, the contractor may face contract termination, suspension, debarment, and resulting loss of future federal business opportunities.
Agency
Must support enforcement of the certification requirement by identifying false certifications, coordinating appropriate action, and applying the remedies through the proper officials and procedures.
Practical Implications
A false certification can lead to both immediate contract consequences and broader exclusion from future federal work, so contractors should treat these certifications as high-risk compliance items.
The contracting officer’s termination authority and the suspension/debarment official’s exclusion authority are separate remedies; one false certification can trigger more than one action.
Suspension and debarment are not automatic and must follow FAR subpart 9.4 procedures, so agencies must document the basis carefully and follow due process requirements.
Contractors should verify the factual basis for any certification before submission, especially where domestic preference or trade-related requirements are involved.
A 3-year debarment period is significant, so even a single false certification can have long-term business consequences well beyond the contract in question.
Official Regulatory Text
Upon the determination of a false certification under subsection 25.702-2 - (a) The contracting officer may terminate the contract; (b) The suspending and debarring official may suspend the contractor in accordance with the procedures in subpart 9.4 ; and (c) The suspending and debarring may debar the contractor for a period not to exceed 3 years in accordance with the procedures in subpart 9.4 .