FAR 9.407-2—Causes for suspension.

Suspension is based on present responsibility

The purpose of suspension is to protect the Government when there is adequate evidence that a contractor may not be presently responsible. It is not a punishment; it is a temporary measure used while facts are unresolved or further action is considered.

Fraud and criminal conduct qualify

A contractor may be suspended for fraud or criminal offenses connected to obtaining, attempting to obtain, or performing a public contract or subcontract. This includes a broad range of dishonest or illegal conduct tied to federal procurement activity.

Antitrust violations are a cause

Violations of Federal or State antitrust statutes relating to the submission of offers can support suspension. The rule targets collusion and other conduct that undermines fair competition in federal contracting.

Theft, false statements, and similar offenses matter

Embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating Federal criminal tax laws, and receiving stolen property are all listed causes. These offenses indicate a serious integrity problem relevant to contractor responsibility.

Drug-Free Workplace violations can trigger action

Violations of 41 U.S.C. chapter 81, including failure to comply with FAR 52.226-7 or a pattern of employee drug convictions showing a lack of good faith effort, may justify suspension. The focus is on whether the contractor has maintained the required drug-free workplace standards.

False domestic origin claims are covered

Intentionally affixing a “Made in America” label, or similar wording, to a product not made in the United States or its outlying areas is a listed cause. This protects the Government from deceptive origin claims in procurement and supply chains.

Unfair trade practices can support suspension

A contractor may be suspended for an unfair trade practice as defined in FAR 9.403. This ties suspension authority to conduct that distorts competition or violates procurement integrity principles.

Serious tax delinquency is a cause

Delinquent Federal taxes exceeding $10,000 may justify suspension. The rule points to FAR 9.406-2(b)(1)(v) for determining when taxes are delinquent, so the amount and delinquency status both matter.

Mandatory disclosure failures are covered

A principal’s knowing failure to timely disclose credible evidence of certain criminal law violations, False Claims Act violations, or significant overpayments can support suspension for up to three years after final payment on the contract. This rule emphasizes timely reporting of serious misconduct and payment issues.

False certification under arms control clause matters

A determination of false certification under FAR 52.209-13, Violation of Arms Control Treaties or Agreements-Certification, is a listed cause for suspension. False certifications undermine the Government’s ability to rely on contractor representations.

Other serious integrity offenses may qualify

The official may suspend for any other offense indicating a lack of business integrity or honesty that seriously and directly affects present responsibility. This catch-all gives flexibility to address serious misconduct not specifically listed.

An indictment is adequate evidence

An indictment for any listed cause is itself adequate evidence for suspension. The Government does not need a conviction before acting when a grand jury indictment exists.

Extraordinary causes are allowed

The suspending and debarring official may also suspend for any other cause of such serious or compelling nature that it affects present responsibility. This provides a broader safety valve for unusual but serious situations.

Suspending and Debarring Official

Determine whether adequate evidence exists and decide whether suspension is necessary to protect the Government. Evaluate the listed causes, any indictment, and any other serious or compelling cause affecting present responsibility.

Contractor

Avoid the listed misconduct, maintain integrity and compliance, keep required workplace and labeling practices, pay Federal taxes, and ensure principals timely disclose credible evidence of covered violations and significant overpayments.

Principal of the Contractor

Timely disclose credible evidence of covered criminal law violations, False Claims Act violations, and significant overpayments in connection with award, performance, or closeout, within the required period after final payment.

Government Contracting Community

Identify and report credible evidence of misconduct, tax delinquency, false certifications, or other integrity concerns so the suspending and debarring official can assess whether suspension is warranted.

Agency Officials

Support responsibility determinations by documenting evidence, coordinating with legal and investigative personnel as needed, and referring matters that may justify suspension.