FAR 9.405—Effect of listing.
Plain-English Summary
FAR 9.405 explains the practical effect of being listed in the government’s exclusion systems, especially SAM exclusion records. It covers who is barred from receiving contracts, subcontracts, or other government business; how debarment, suspension, proposed debarment, voluntary exclusion, and other statutory or regulatory ineligibility determinations affect eligibility; and the special rule for contractors declared ineligible under 22 U.S.C. 2593e. The section also addresses exclusion from serving as an individual surety and the contracting officer’s required SAM checks after bid/proposal/quote receipt and again immediately before award. In practice, this section is the government’s operational “do not do business” rule: it tells agencies when they must reject, not evaluate, or not award to listed entities, and when only a written compelling-reason determination by the agency head can override the exclusion. For contractors, it means exclusion status can affect not only prime contracting but also subcontracting, agency consent to subcontracts, and acting as an agent or representative for others. For contracting officers, it creates mandatory screening and documentation steps that are critical to avoiding an improper award.
Key Rules
Listed contractors are excluded
Contractors who are debarred, suspended, proposed for debarment, or voluntarily excluded are excluded from receiving contracts. Agencies generally may not solicit offers from, award contracts to, or consent to subcontracts with these contractors unless the agency head makes a compelling-reason determination.
No business as agent or representative
The exclusion also reaches business conducted with the Government as an agent or representative of other contractors. A listed contractor cannot be used to bypass the exclusion by acting behind the scenes for another firm.
Other statutory exclusions apply
Entities with active exclusion records in SAM based on statutory or other regulatory ineligibility are excluded under the terms and period set by the governing statute or regulation. Agencies must follow those specific legal conditions and may not solicit, award, or consent to subcontracts outside them.
Special rule for certain ineligibility
Agencies may not enter into, renew, or extend contracts with contractors declared ineligible under 22 U.S.C. 2593e. This is a separate mandatory bar tied to that statute.
No individual surety role
Contractors who are debarred, suspended, proposed for debarment, or voluntarily excluded are excluded from acting as individual sureties. This prevents listed parties from supporting contract bonds or guarantees.
Post-opening SAM review required
After bid opening or receipt of proposals or quotes, the contracting officer must review SAM exclusion records. This check is required before the agency proceeds with evaluation or award actions.
Bids from listed firms are rejected unless overridden
For sealed bidding, bids from listed contractors must be entered on the abstract of bids and rejected unless the agency head determines in writing that there is a compelling reason to consider the bid.
Proposals and quotes are not evaluated
For negotiated procurements and quotes, proposals, quotations, or offers from listed contractors must not be evaluated, included in the competitive range, or discussed during the period of ineligibility unless the agency head makes a written compelling-reason determination. If the exclusion ends before award, the contracting officer may consider the offer but is not required to do so.
Final SAM check before award
Immediately before award, the contracting officer must review SAM again to ensure the award is not made to a listed contractor. This second check is a final safeguard against awarding to an excluded entity.
Responsibilities
Agency Head
May determine, in writing, that there is a compelling reason to solicit from, award to, consent to a subcontract with, or otherwise consider a listed contractor where the FAR permits an exception. The determination must be explicit and documented.
Contracting Officer
Must review SAM exclusion records after bid opening or receipt of proposals/quotes and again immediately before award. Must reject listed bids unless a compelling-reason determination exists, must not evaluate or discuss listed proposals during ineligibility, and may choose whether to consider an offer if the exclusion ends before award.
Agency
Must not solicit offers from, award contracts to, or consent to subcontracts with excluded or otherwise ineligible contractors except as allowed by statute, regulation, or a compelling-reason determination. Must comply with special statutory bars such as 22 U.S.C. 2593e.
Contractor
Must understand that exclusion status affects prime contracting, subcontracting, acting as an agent or representative, and serving as an individual surety. Must avoid misrepresenting eligibility and should monitor SAM status closely.
Other Entities with Active Exclusion Records
Must comply with the specific statutory or regulatory conditions and time periods governing their ineligibility, because those conditions control whether and how they may participate in federal procurement.
Practical Implications
This section makes SAM checks mandatory, not optional, and the timing matters: one check after receipt and another right before award. Missing either check can lead to an improper award.
A listed contractor is not just barred from prime awards; the exclusion can also block subcontracting consent and even behind-the-scenes participation as an agent or representative.
For sealed bidding, the bid still gets recorded on the abstract of bids, but it is normally rejected. For negotiated procurements, the offer is generally not evaluated or discussed at all.
If an exclusion expires before award, the contracting officer has discretion to consider the offer, but there is no obligation to do so. That means expiration does not automatically revive the offer.
The main pitfall is relying on an earlier eligibility check. Exclusion status can change during the procurement, so contracting officers need a final SAM review immediately before award and should document any compelling-reason exception carefully.
Official Regulatory Text
(a) Contractors debarred, suspended, proposed for debarment, or voluntarily excluded, 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 (see 9.405-1 (a)(2), 9.405-2 , 9.406-1 (d), 9.407-1 (d), and 26.505 (e)). Contractors debarred, suspended, proposed for debarment, or voluntarily excluded, are also excluded from conducting business with the Government as agents or representatives of other contractors. (b) Contractors and other entities that have an active exclusion record in SAM because they have been declared ineligible on the basis of statutory or other regulatory procedures are excluded from receiving contracts, and if applicable, subcontracts, under the conditions and for the period set forth in the statute or regulation. Agencies shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors under those conditions and for that period. (c) Agencies shall not enter into, renew, or extend contracts with contractors that have been declared ineligible pursuant to 22 U.S.C. 2593e . (d) Contractors debarred, suspended, proposed for debarment, or voluntarily excluded, are excluded from acting as individual sureties (see part 28 ). (e) (1) After the opening of bids or receipt of proposals or quotes, the contracting officer shall review the exclusion records in SAM. (2) Bids received from any listed contractor in response to an invitation for bids shall be entered on the abstract of bids, and rejected unless the agency head determines in writing that there is a compelling reason to consider the bid. (3) Proposals, quotations, or offers received from any listed contractor shall not be evaluated for award or included in the competitive range, nor shall discussions be conducted with a listed offeror during a period of ineligibility, unless the agency head determines, in writing, that there is a compelling reason to do so. If the period of ineligibility expires or is terminated prior to award, the contracting officer may, but is not required to, consider such proposals, quotations, or offers. (4) Immediately prior to award, the contracting officer shall again review the exclusion records in SAM to ensure that no award is made to a listed contractor.