Are You Under Review for Debarment or Suspension? Here’s What Happens Next

You just received a formal notice from a federal agency stating that you (or your company) may be suspended or debarred from contracting with the U.S. government. Your heart drops. Your business depends on government work. You’re not sure what this letter means, what to do next, or how long you have to act.

You’re not alone, and you’re not powerless.

At NSLF, we’ve helped contractors, subcontractors, grantees, and individuals in your exact position fight back—and win. This guide explains the entire suspension and debarment process, from first notice to final decision, so you can regain control, protect your reputation, and move forward with confidence.

First, the Basics: What Are Suspension and Debarment?

Debarment is a formal exclusion from receiving government contracts or financial assistance, usually for three years.

Suspension is a temporary exclusion, often used when an investigation or legal proceeding is underway. It can last up to 12 months (with possible extensions).

Both result in your name or company being added to the SAM.gov Exclusions List, which agencies consult before awarding contracts.

Who Has the Power to Debar or Suspend You?

Each federal agency has a Suspending and Debarring Official (SDO)—the person responsible for determining whether an entity or individual should be excluded.

Agencies with active SDOs include:

SDOs operate under rules found in the Federal Acquisition Regulation (FAR Subpart 9.4) and/or the Nonprocurement Common Rule (2 C.F.R. Part 180).

Step-by-Step: The Suspension and Debarment Process

Here is a detailed timeline of what happens once you’re in the government’s crosshairs:

Step 1: Investigation or Allegation

An agency may learn of alleged misconduct from internal audits, whistleblower reports, criminal investigations, or media exposure. This triggers internal review.

Example hypo: A federal health grantee is flagged for irregular expenses during an Office of Inspector General (OIG) audit. The OIG refers the matter to the agency’s SDO.

Step 2: Notice of Suspension or Proposed Debarment

You receive a formal Notice of Suspension or Notice of Proposed Debarment—typically by certified mail or electronically. It outlines the agency’s concerns and explains the proposed action.

You are now at risk of being excluded from federal contracting or funding. But this is not the final decision.

Step 3: Response Period (Usually 30 Days)

You have the right to respond. The response window is typically 30 days, but check your notice for specific deadlines. You may submit:

  • A written response (this is mandatory to contest the action)
  • A request for a meeting or presentation (optional, but strategic)

A strong response shows you’re presently responsible and may include:

  • Documentary evidence
  • Compliance improvements
  • Witness statements
  • Proof of corrective action
  • Legal arguments addressing the agency’s authority or process

Note: Suspension decisions are often made quickly, sometimes without advance notice. But you still have the right to contest and seek reversal.

Step 4: Presentation to the SDO (Optional)

You may request a meeting (virtual or in-person) to present your side. This is not a formal trial but a chance to:

  • Explain why debarment or suspension isn’t justified
  • Propose an Administrative Agreement as an alternative

Step 5: Agency Review and Decision

The SDO considers:

  • The seriousness of the alleged conduct
  • Evidence of present responsibility
  • Mitigating or aggravating factors
  • Whether continued eligibility would be in the government’s interest

You will receive written notification of the outcome:

  • No action (case dropped)
  • Administrative Agreement (remain eligible with conditions)
  • Debarment (3 years or more exclusion)
  • Suspension continues until related proceedings conclude

Step 6: Appeal or Reinstatement (If Applicable)

There’s no formal appeal process, but you may:

  • Request reconsideration
  • Seek reinstatement after demonstrating responsibility
  • Challenge the decision in court (rare and difficult)

What Can You Do to Improve the Outcome?

Agencies care about present responsibility. This means showing that:

  • You understand what went wrong (if anything)
  • You’ve taken corrective action
  • Your company has strong internal controls and compliance systems

Hypo example: A construction firm flagged for labor misclassification responds with documentation, retraining programs, a new compliance officer, and third-party audits. The SDO accepts an administrative agreement instead of imposing debarment.

How Much Does a Debarment Defense Lawyer Cost?

At NSLF, we believe legal defense should be clear and affordable. That’s why we offer flat-fee pricing:

  • $5,000: Written-only response package (review, strategy, submission)
  • $7,500: Hearing representation (if required, most (but not all) cases do not require a hearing) (includes travel)

We also offer legal financing through Pay Later by Affirm, allowing you to break up fees over 3–24 months.

Why Choose NSLF?

We are one of the nation’s premier firms for federal debarment and suspension defense, with 4.9-star Google reviews to back it up.

What sets us apart:

  • Founded by disabled veterans with a mission of service and excellence
  • Attorneys are former federal prosecutors, IG counsel, and military JAGs
  • Located in Washington, DC, where many SDO offices are based
  • Representing clients nationwide
  • We handle overlapping issues like FOIA, clearance defense, federal employment
  • We hold security clearances and understand sensitive contract issues
  • Our Attorney Review Board meets weekly to review complex cases — giving you multiple legal minds for one price

We don’t just react. We build strategy. We defend reputation. We help our clients move forward.

Additional Resources

Looking for more guidance? Our Debarment Defense Practice Page is your go-to starting point.

There, you’ll find a variety of helpful resources covering everything from the most common mistakes that lead to debarment, to the legal strategies that actually work in defending against it. We also share insights on how our attorneys build strong defenses, what steps you can take to improve your chances of success, and how to maximize the outcome of your case.

Whether you’re just learning about the process or actively fighting a proposed debarment, we’ve got you covered.

Take Control of Your Case Before It’s Too Late

Every day you wait makes it harder to protect your business, contracts, and future income. Agencies move fast, and you should too.

Schedule a free consultation with NSLF today. We’ll tell you exactly what to do next. Our team will build a personalized legal strategy and submit a powerful defense on your behalf.

This is the fastest way to protect your reputation, avoid blacklisting, and get back to work. Book your consult now and go to sleep tonight knowing this is being handled by the pros.

👉 Click here to book a consultation