FAR 9.407-1—General.
Plain-English Summary
FAR 9.407-1 explains the general framework for suspension of contractors and related entities. It covers when a suspending and debarring official may suspend a contractor, the standard of "adequate evidence," the requirement that suspension be based on a serious need to protect the Government’s interest, and the official’s discretion in deciding whether immediate action is warranted. It also addresses how agencies should evaluate evidence, including indictments and other official findings, and makes clear that suspension is not automatic even when a cause exists. The section further explains the scope of suspension across a contractor’s divisions and affiliates, the governmentwide effect of suspension across the executive branch, and the special rule for agencies that can suspend both acquisition contractors and sellers of Federal personal property. In practice, this section is the core policy statement for suspension actions: it balances the Government’s need to act quickly to protect itself against the contractor’s interest in fair treatment and due process, while ensuring the action is broad enough to be effective when justified.
Key Rules
Suspension for listed causes
A suspending and debarring official may suspend a contractor in the public interest for any cause listed in FAR 9.407-2, using the procedures in FAR 9.407-3. The authority is discretionary, not automatic, and must be exercised through the prescribed process.
Serious action, adequate evidence
Suspension is a serious measure that must rest on adequate evidence and is used pending investigation or legal proceedings when immediate action is needed to protect the Government’s interest. Agencies should evaluate the quantity, credibility, corroboration, and reasonable inferences from the available information, including basic contract records and correspondence.
Wide discretion on immediacy
The suspending and debarring official has broad discretion to decide whether immediate action is necessary to protect the Government. That judgment may be based on the nature of the underlying circumstances or on potential business relationships or involvement with a Federal program.
Indictments and official findings count
An indictment or other official findings by Federal, State, or local bodies that resolve factual or legal matters constitute adequate evidence for suspension purposes. This means the Government does not need to prove the case anew before acting.
Suspension is not automatic
Even if a cause for suspension exists, the official does not have to suspend the contractor. The official should consider the seriousness of the conduct and may consider remedial measures, mitigating factors, or aggravating factors, but the contractor bears the burden of promptly presenting evidence of remediation or mitigation once it knows a cause may exist.
Scope can reach divisions and affiliates
A suspension normally applies to all divisions and organizational elements of the contractor unless the decision is expressly limited. Affiliates may also be included, but only if they are specifically named and given written notice and an opportunity to respond.
Governmentwide effect with limited exceptions
A contractor’s suspension applies throughout the executive branch unless an agency head or designee states in writing compelling reasons for continued business dealings with that contractor. This creates a governmentwide exclusion effect, subject to narrow written exceptions.
Coordinate acquisition and property suspensions
If the suspending and debarring official has authority over both acquisition contracts under the FAR and purchases of Federal personal property under the FMR, the official must consider suspending the contractor from both types of transactions at the same time. If both are included, the suspension notice must say so and cite the applicable FAR and FMR authorities.
Responsibilities
Suspending and Debarring Official
Decide whether suspension is in the public interest; determine whether adequate evidence exists; assess whether immediate action is necessary; consider the seriousness of the conduct and any remedial, mitigating, or aggravating factors; define the scope of the suspension; provide notice and opportunity to respond to specifically named affiliates; ensure the suspension is effective governmentwide; and, when authorized, consider simultaneous suspension from acquisition contracts and Federal personal property purchases.
Contractor
If it knows or has reason to know a cause for suspension may exist, promptly present evidence of remedial measures or mitigating factors to the suspending and debarring official. The contractor should also understand that suspension may extend to divisions, organizational elements, and named affiliates.
Agency Head or Designee
If the agency wants to continue doing business with a suspended contractor, state in writing the compelling reasons justifying continued business dealings with that contractor, subject to the cited exception.
Agency Officials and Investigators
Gather and evaluate evidence supporting a possible suspension, including contracts, inspection reports, correspondence, indictments, and other official findings, and provide the factual basis needed for the suspending and debarring official’s decision.
Practical Implications
Suspension can happen quickly, so contractors should treat any credible allegation, indictment, or adverse official finding as a trigger to prepare a response and document remediation immediately.
The evidence threshold is lower than a final adjudication, but it is not trivial; agencies should still build a solid record using reliable documents and corroborated facts.
Contractors often overlook that suspension can reach affiliates and organizational elements, not just the named legal entity, which can disrupt multiple business lines at once.
Because suspension is governmentwide, one agency’s action can affect eligibility across the executive branch unless a written exception is made.
If an agency has authority over both FAR acquisitions and FMR personal property sales, the notice must clearly identify both authorities; incomplete notices can create confusion about the scope of the exclusion.
Official Regulatory Text
(a) The suspending and debarring official may, in the public interest, suspend a contractor for any of the causes in 9.407-2 , using the procedures in 9.407-3 . (b) (1) Suspension is a serious action to be imposed on the basis of adequate evidence, pending the completion of an investigation or legal proceedings, when it has been determined that immediate action is necessary to protect the Government's interest. In deciding whether immediate action is necessary to protect the Government's interest, the suspending and debarring official has wide discretion. The suspending and debarring official may infer the necessity for immediate action to protect the Government's interest either from the nature of the circumstances giving rise to a cause for suspension or from potential business relationships or involvement with a program of the Federal Government. In assessing the adequacy of the evidence, agencies should consider how much information is available, how credible it is given the circumstances, whether or not important allegations are corroborated, and what inferences can reasonably be drawn as a result. This assessment should include an examination of basic documents such as contracts, inspection reports, and correspondence. An indictment or other official findings by Federal, State, or local bodies that determine factual and/or legal matters, constitutes adequate evidence for purposes of suspension actions. (2) The existence of a cause for suspension does not necessarily require that the contractor be suspended. The suspending and debarring official should consider the seriousness of the contractor's acts or omissions and may, but is not required to, consider remedial measures, mitigating factors, or aggravating factors, such as those in 9.406-1 (a). A contractor has the burden of promptly presenting to the suspending and debarring official evidence of remedial measures or mitigating factors when it has reason to know that a cause for suspension exists. The existence or nonexistence of any remedial measures or aggravating or mitigating factors is not necessarily determinative of a contractor's present responsibility. (c) Suspension constitutes suspension of all divisions or other organizational elements of the contractor, unless the suspension decision is limited by its terms to specific divisions, organizational elements, or commodities. The suspending and debarring official may extend the suspension decision to include any affiliates of the contractor if they are- (1) Specifically named; and (2) Given written notice of the suspension and an opportunity to respond (see 9.407-3 (c)). (d) A contractor’s suspension shall be effective throughout the executive branch of the Government, unless the agency head or a designee (except see 26.505 (e)) states in writing the compelling reasons justifying continued business dealings between that agency and the contractor. (e) (1) When the suspending and debarring official has authority to suspend contractors from both contracts pursuant to the Federal Acquisition Regulation in this chapter and contracts for the purchase of Federal personal property pursuant to Federal Management Regulation (FMR) in 41 CFR part 102-38, that official shall consider simultaneously suspending the contractor from the award of acquisition contracts and from the purchase of Federal personal property. (2) When suspending a contractor from the award of acquisition contracts and from the purchase of Federal personal property, the suspension notice shall so indicate and the appropriate FAR and FMR citations shall be included.