Suspension and Debarment

As an executive branch agency, the Department of Commerce has the authority to suspend and debar contractors and grantees. The Federal Acquisition Regulation (FAR) and the Nonprocurement Common Rule (NCR) both recommend that agencies implement procedures for coordinating suspension and debarment actions.  

In 1994, Congress passed the Federal Acquisition Streamlining Act of 1994, mandating reciprocity of suspension and debarment determinations between procurement and nonprocurement programs. In protecting the Government’s interest, the Department of Commerce shall solicit and award contracts only to responsible sources determined to be reliable, dependable, and capable of performing highlighted work. 

Suspension and debarment are contract/grant remedies; as such, the provisions of this directive apply to the processing of all Department of Commerce suspension and debarment actions. The serious nature of suspension and debarment requires that these sanctions by imposed only for the Governments protection and not for the purposes of punishment.  

Department employees are responsible for the enforcement of this directive. This directive represents a comprehensive debarment and suspension program and applies to both actions involving contracts under the FAR and actions involving grants under the NCR. 

The Government-wide policies concerning suspension and debarment in grants and contracts:

• F.A.R. (Contracts - Subpart 9.4)
• NCR (Grants - 2 CFR Part 180)
• Department of Commerce Supplemental Guidance to NCR

Specific Department of Commerce Policies Related to Suspension and Debarment:

• Department of Commerce Contractor and Recipient Responsibility Program Handbook (aka S&D Handbook)
  •   Referral for Consideration of Suspending and Debarring Official Form
  • Notice to Suspending and Debarring Official Form 
• Aggravating and Mitigating Factors
• Suspension and Debarment Guidance
• Fraud Indicators

Interagency Suspension and Debarment Committee

An overview of the ISDC, and why it was formed, can be found at their official website, located at: https://www.acquisition.gov/isdc-home

Office of Acquisition Management
Office of the Chief Financial Officer and Assistant Secretary for Administration
Office of the Secretary
U.S. Department of Commerce

This page was updated on June 12, 2024.