For federal contractors, debarment is the ultimate business threat. It means you’re no longer eligible to bid on, receive, or participate in government contracts — sometimes for years. It can destroy a firm’s reputation overnight and cut off vital revenue streams.

But a proposed debarment is not the end. You have the right to respond, present mitigating evidence, and negotiate reinstatement. The sooner you act, the better your chances of protecting your eligibility and preserving your reputation in the federal marketplace.

At National Security Law Firm (NSLF), our federal contractor debarment attorneys represent companies, small businesses, and individual vendors facing suspension or debarment actions under the Federal Acquisition Regulation (FAR).

Here’s what you need to know about the process — and how to fight back strategically.

What Is Federal Contractor Debarment?

Under FAR Subpart 9.4, a debarment is an official government action that prevents a contractor from doing business with the federal government for a specific period — typically one to three years.

A suspension, by contrast, is a temporary exclusion that can be imposed immediately if the agency believes there’s “adequate evidence” of misconduct pending investigation.

Both actions are governmentwide, meaning once you’re suspended or debarred by one agency, all other agencies must honor that exclusion.

Common Grounds for Suspension or Debarment

The Federal Acquisition Regulation (FAR 9.406–9.407) allows an agency’s Suspending and Debarring Official (SDO) to exclude contractors for reasons that “reflect a lack of business integrity or honesty.”

Common grounds include:

  • False claims or misrepresentations in bids, invoices, or certifications.

  • Fraudulent documentation (including altered doctor’s notes, leave records, or subcontractor data).

  • Violations of contract terms or labor standards.

  • Criminal indictments or convictions related to government contracts.

  • Serious performance failures or poor internal controls.

  • Unethical conduct or “pattern of irresponsible business practices.”

Even a single finding can trigger suspension while the government investigates, and the burden is on you to show why reinstatement is appropriate.

The Suspension and Debarment Process

Step 1: Notice of Proposed Debarment or Suspension

The SDO sends a formal Notice of Proposed Debarment (NOPD) or Notice of Suspension, explaining the allegations and the supporting evidence.

Step 2: Opportunity to Respond

You generally have 30 calendar days to respond in writing. This is your chance to present:

  • Factual rebuttals;

  • Mitigation and corrective actions; and

  • Evidence of present responsibility.

Step 3: Agency Review and Decision

The SDO reviews your submission, supporting documentation, and any oral presentation (if granted). A final decision follows — granting reinstatement, imposing a negotiated administrative agreement, or confirming the debarment.

What “Present Responsibility” Means

The key issue in every case is “present responsibility.” Even if past mistakes occurred, the government can only exclude you if it believes you are not presently responsible — meaning you can’t be trusted to conduct business ethically and competently.

To prove responsibility, your response should demonstrate:

  • Remedial actions: internal audits, ethics training, compliance program improvements.

  • Management changes: new leadership, revised policies, or disciplinary measures.

  • Transparency: full cooperation with investigators and regulators.

  • Rehabilitation: no repeat violations, clean recent performance history.

The focus should always be on what you’ve done since the incident to ensure it won’t happen again.

The Impact of Debarment

A finalized debarment:

  • Bars all federal contracting and subcontracts under government programs.

  • Leads to publication in SAM.gov’s Exclusions List, visible to every contracting officer.

  • Can trigger state and local contract ineligibility, especially for federally funded programs.

  • May result in termination for default or cancellation of current contracts.

  • Damages private-sector credibility with banks, vendors, and investors.

The reputational and financial consequences can be devastating.

How to Respond Effectively

Your written response is your first — and sometimes only — chance to prevent debarment. It must be detailed, fact-based, and backed by evidence.

Key Strategies

  1. Challenge the Facts and Findings

    • Identify inaccuracies in the investigation.

    • Point out unsupported or stale allegations.

    • Demand underlying evidence if not disclosed.

  2. Provide Mitigation Evidence

    • Demonstrate new internal controls and compliance systems.

    • Show corrective action or employee discipline.

    • Present character and performance references.

  3. Negotiate an Administrative Agreement

    • Many debarments are resolved through negotiated agreements requiring training, compliance audits, or monitoring.

    • These allow continued eligibility while demonstrating accountability.

  4. Work with Counsel Experienced in FAR Debarment

    • Agencies prefer structured, legally sound responses.

    • Representation by attorneys familiar with SDO expectations signals cooperation and credibility.

How NSLF Defends Contractor Debarments

Our team at National Security Law Firm combines federal litigation experience with agency-side insight. We’ve represented contractors, small businesses, and individuals before:

  • The Department of State,

  • The Department of Defense,

  • The General Services Administration (GSA), and

  • The Department of Homeland Security (DHS).

We:

  • Analyze the investigative file for procedural and evidentiary weaknesses.

  • Prepare persuasive, documented written responses.

  • Negotiate with the SDO for reinstatement or conditional agreements.

  • Advise on compliance frameworks to demonstrate “present responsibility.”

In many cases, we’ve helped clients avoid public listing on SAM.gov, shorten exclusion periods, and regain contracting eligibility quickly.

Why Acting Fast Matters

Suspensions can be imposed immediately and last the entire duration of a pending investigation. Without a proactive response, you could lose business opportunities for 12–18 months or longer before the case even concludes.

By engaging counsel early, you can:

  • Correct factual errors before they spread to other agencies.

  • Protect your reputation with contracting officers.

  • Prevent termination or default actions on existing contracts.

Why Choose NSLF

  • 4.9-star Google rating from clients nationwide.

  • Veteran-founded and mission-driven law firm headquartered in Washington, D.C.

  • Attorneys with inside knowledge of agency debarment processes — including DOD, DHS, and State.

  • Proven record of restoring contractor eligibility and protecting reputations.

  • Nationwide representation for both prime and subcontractors.

Our senior attorneys — Jeff Velasco, Danielle Moora, and Karen Hickey — have handled high-stakes federal suitability and acquisition matters. They know how the government evaluates responsibility and how to turn those standards to your advantage.

Explore the Federal Contractor Defense Resource Hub

Visit our Federal Employment & Contractor Defense Hub for more strategies and case studies on:

  • FAR 9.406–9.407 debarments and suspensions.

  • Responding to OIG and agency investigations.

  • Negotiating administrative compliance agreements.

  • Protecting contractor past performance and eligibility.

Book a Free Consultation

If your business or personal eligibility is threatened by a Notice of Proposed Debarment or Suspension, the clock is ticking. You have the right to respond — and the right to protect your livelihood.

Book your free consultation today.

National Security Law Firm: It’s Our Turn to Fight for You.