FAR 9.407—Suspension.

General.

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.

Causes for suspension.

FAR 9.407-2 explains when a suspending and debarring official may temporarily suspend a contractor from federal contracting because there is adequate evidence that the contractor is not presently responsible. This section covers the specific causes for suspension, including fraud and criminal offenses connected to obtaining, attempting to obtain, or performing a public contract or subcontract; antitrust violations related to submitting offers; embezzlement, theft, forgery, bribery, falsification or destruction of records, false statements, tax evasion, violations of Federal criminal tax laws, and receipt of stolen property; Drug-Free Workplace violations under 41 U.S.C. chapter 81 and FAR 52.226-7; false “Made in America” labeling; unfair trade practices; delinquent Federal taxes over $10,000; knowing failure by a principal to disclose credible evidence of certain criminal, civil False Claims Act, or significant overpayment issues; false certification under FAR 52.209-13; and any other offense showing a serious lack of business integrity or honesty. It also states that an indictment for any listed cause is adequate evidence for suspension, and it allows suspension for other serious or compelling causes affecting present responsibility. In practice, this section gives the Government a protective tool to act quickly when credible evidence suggests a contractor may pose a risk, even before final criminal or civil resolution. For contractors, it is a warning that misconduct, non-disclosure, tax delinquency, and integrity failures can trigger immediate exclusion from new awards and continued business with the Government.

Procedures.

FAR 9.407-3 explains the procedures agencies must use when suspending a contractor, from the initial reporting and referral of potential suspension matters through the notice, contractor response, fact-finding, and final decision process. It covers agency procedures for prompt investigation and referral, the informal but fair decision-making process, the contractor’s right to respond after suspension, when additional proceedings are required to resolve disputed material facts, what must be included in the notice of suspension, and how the suspending and debarring official must base the final decision on the administrative record. In practice, this section is the due-process framework for suspension actions: it balances the Government’s need to protect itself quickly from potentially irresponsible contractors against the contractor’s right to know the allegations and contest them. It also distinguishes between actions based on an indictment and those based on other evidence, because that distinction affects whether the contractor gets a fuller evidentiary opportunity. For contractors, this section is critical because it tells them what information they must provide, what deadlines apply, and what happens if they fail to disclose required information or provide false statements. For agencies and contracting officials, it is the roadmap for building a defensible suspension action that is prompt, fair, and properly documented.

Period of suspension.

FAR 9.407-4 sets the time limits for a suspension and explains when it must end, when it may be extended, and who must be notified before it expires. It covers the basic rule that suspension is temporary and tied to an ongoing investigation and any resulting legal proceedings, the 12-month deadline for starting legal proceedings, the limited 6-month extension if a responsible prosecuting official requests it, the absolute 18-month maximum unless proceedings have already begun, and the requirement for advance notice to the Department of Justice or another responsible prosecuting official. In practice, this section prevents suspensions from becoming open-ended exclusions from federal contracting and forces the Government to keep the case moving or justify a short extension. For contractors, it means a suspension is serious but not indefinite; for agencies, it means careful calendar control and coordination with prosecutors are essential. The section also creates a clear procedural checkpoint before the first 12 months expire so the Government can preserve the option to extend the suspension if prosecution is still being considered.

Scope of suspension.

FAR 9.407-5 explains the reach of a suspension action and ties it directly to the debarment scope rules in FAR 9.406-5. In practical terms, it tells agencies and contractors that a suspension is not a narrow, one-off restriction; it generally carries the same breadth as debarment, affecting the suspended party’s eligibility to receive federal contracts and covered subcontracts, and potentially extending to affiliates and related entities as permitted by the debarment-scope rules. The section also makes clear that the way suspension is imposed is different from debarment: agencies must use the suspension procedures in FAR 9.407-3, which are designed for the more urgent, temporary nature of suspension. This section matters because it links the substantive reach of the exclusion to the procedural safeguards and timing rules that govern how quickly an agency can act when immediate protection of the Government’s interests is needed. For contractors, it signals that a suspension can have broad business consequences even before a final debarment decision is made. For contracting officers and suspension officials, it is a reminder to apply the correct scope rules and the correct procedural path.