Federal suspension and debarment are not minor administrative matters.

They are discretionary determinations about whether you are presently responsible to contract with the United States government.

If a federal agency determines that a contractor lacks “present responsibility,” it may suspend or debar that contractor from federal contracting and certain federal assistance programs.

Suspensions often last months.

Debarments may last years.

The impact can be immediate and severe:

• Exclusion from federal contracts
• Placement on the System for Award Management (SAM) exclusion list
• Loss of federally funded employment
• Reputational damage
• Potential cascading consequences involving security clearance or federal employment exposure

If you have received a Notice of Proposed Debarment, a suspension notice, or communication from a Suspending and Debarring Official (SDO), you are in a time-sensitive federal proceeding.

National Security Law Firm represents contractors nationwide in suspension and debarment defense matters. Our attorneys are former military JAG officers, former government counsel, and federal litigators who understand how agencies evaluate risk, mitigation, and present responsibility.

Consultations are free.

If you are facing debarment and want tailored advice for your specific situation, contact us to book a free consultation.

What Is Debarment?

Debarment is where a contractor is excluded from entering into government contracts with the executive branch for a certain period. The government places additional restrictions on the debarred individual’s ability to receive types of federal funding and work for federally-funded organizations.

The debarring officials at the appropriate agency determine whether a current or prospective contractor or subcontractor is no longer eligible to perform work under a government contract with the executive branch.

What Is Suspension and Debarment?

Suspension and debarment are tools used by federal agencies to protect the government from doing business with contractors deemed not presently responsible.

They are governed primarily by:

• FAR § 9.406 (Debarment)
• FAR § 9.407 (Suspension)

These are not criminal penalties.

They are administrative exclusions based on present responsibility.

The decision is made by a Suspending and Debarring Official (SDO), who evaluates whether your integrity, business ethics, and compliance systems are sufficient to protect government interests.

What Is “Present Responsibility”?

The central question in any government contractor debarment case is not whether misconduct occurred.

It is whether you are presently responsible.

Present responsibility includes:

• Integrity and business ethics
• Adequate compliance systems
• Financial reliability
• Cooperation with government investigations
• Remediation efforts
• Corrective action measures

An SDO does not only look backward.

They assess whether you can be trusted now.

This forward-looking standard drives strategy.

Suspension vs. Debarment

Both suspensions and debarments can significantly impact the contractor’s life. That said, there are important differences between the two.

If you are facing suspension or debarment, do not go it alone. You have options, and having an experienced attorney can help increase your chances of minimizing the impact of the proceedings. Our suspension and debarment attorneys understand your struggles and are here to fight for your rights.

Suspension (FAR § 9.407)

Per FAR § 9.407, a suspension is a temporary disqualification of a contractor to perform work on federally awarded contracts. Suspensions typically remain in effect while the government investigates the situation or while related legal or administrative proceedings are pending.

The suspension may end if the government fails to initiate suspension proceedings within 12 months of issuing the notice. In some cases, the government has up to 18 months to initiate suspension proceedings.

The scope of a suspension is typically identical to that of debarments. The contractor cannot work on or sign new government contracts or receive federal assistance. Suspensions can also negatively impact your ability to work at places that receive federal funding.

Debarment (FAR § 9.406)

In contrast, debarment typically lasts three years or less, in proportion to the severity of the alleged misconduct. Specific offenses carry stiffer penalties. For example, according to FAR § 9.406.4, violation of the federal Drug-Free Workplace Act may result in a debarment period of up to five years.

If the contractor was suspended leading up to the current debarment, the government might reduce the debarment period accordingly.

While someone is debarred, they cannot participate in most government contracts with the executive branch or receive certain types of federal funding. Their ability to find new work is likewise limited because they may be ineligible to work for federally-funded employers.

What Are Common Reasons for Debarment?

Debarment may occur for many reasons, as outlined in FAR § 9.406-2. If the investigating officer believes your conduct falls in one of these categories, they may subject you to debarment proceedings.

Common reasons for debarment include:

  • Certain criminal convictions or civil judgments against you
  • Failure to abide by the terms of a government contract
  • Violation of the Drug-Free Workplace Act
  • Owing delinquent federal taxes
  • Failure to make required disclosures
  • Other causes of a “serious or compelling nature”
  • Failure to abide by the employment provisions of the Immigration and Nationality Act

Our team focuses on providing top-tier representation of clients in national security cases, such as those involving debarment proceedings. Before engaging in private practice, the team worked for the federal government, giving them an edge over other firms in this area of law.

Civil Judgment or Criminal Conviction

A debarment may occur if a contractor receives a criminal conviction or civil judgment in the following circumstances:

  • Conviction of a crime or civil judgment for committing fraud or a criminal offense involving a government contract
  • Violation of federal or state antitrust law in submitting an offer
  • Committing embezzlement, forgery, theft, bribery, tax evasion, making false statements, or other related offenses
  • Intentionally putting a “Made in America” sticker or marking on a product sold in or shipped to the U.S. that was not made in the United States or by one of its outlying territories
  • Committing an offense that shows a lack of business integrity or honesty and impacts a current responsibility to the government

If you are in the midst of legal proceedings for any of these, the government may initiate debarment proceedings.

Please note that, in many cases of the above, the government may decide against debarring you if legal proceedings against you do not result in a conviction or civil judgment. The exception is if the government believes you intentionally misused a “Made in America” as described above. In that case, the government may debar you if it believes you, more likely than not, committed the violation.

A conviction or civil judgment against you that falls into one of the above categories does not automatically mean debarment is guaranteed. The government still needs to prove that the factual circumstances merit debarment under the criteria outlined in the regulations.

The National Security Law Firm understands the unique circumstances of debarment proceedings and the rights of contractors like you. We diligently review the administrative record and develop a strategy to maximize the potential for a positive outcome for our clients. We appreciate what is on the line. Our team does everything in our power to minimize the impact of the debarment proceedings on our clients’ lives.

Failure to Follow the Terms of a Contract

In some situations, the government can debar a contractor for failing to abide by the terms of an existing federally-awarded contract. According to the regulations, the failure must be willful or be part of a history of noncompliance with a government agreement.

For these grounds to apply, the government must meet a preponderance of the evidence standard. This standard requires the government to show that it is more likely than not that you willfully failed to perform the terms of the contract.

Drug-Free Workplace Violation

Under the Drug-Free Workplace Act, contractors must not use, possess, manufacture, distribute, or dispense a controlled substance while performing a government contract. If the contractor fails to follow this rule, this may be grounds for suspension, debarment, or other adverse action.

An important note is that the contractor may still be subject to proceedings even if they do not directly violate the Drug-Free Workplace Act. This typically occurs if a high number of their employees are convicted of drug offenses or violate the Drug-Free Workplace Act.

Owing Delinquent Federal Taxes

If the contractor owes more than $10,000 in delinquent federal taxes, they may be debarred. Taxes are delinquent if any of the following applies:

  • There is a final determination of the taxpayer’s liability to pay the taxes. Taxes are not yet delinquent if you or your attorney filed a pending good faith challenge to the decision of how much you owe in taxes.
  • The tax liability is delinquent, meaning that the time for payment has come and gone, and the taxpayer has not made sufficient payments.
  • A tax liability is not delinquent if the taxpayer is in a bankruptcy proceeding or is making installment payments based on an agreed plan with the IRS. Further, tax debt is not delinquent if it is the subject of pending legal challenges.

Failure to Make Required Disclosures

Contractors may be subject to debarment proceedings if the contractor or a principal on a contract fails to disclose to the government credible evidence of the following:

  • Violation of specific Federal criminal laws, including fraud
  • Violation of the civil False Claims Act
  • Significant overpayments on the contract

The contractor (as the principal under the contract) must make these disclosures for up to three years after the final contract payment.

Additional Reasons for Debarment

Additional reasons for debarment include:

  • False certification under the Violation of Arms Control Treaties or Agreement-Certification
  • The Secretary of Homeland Security or United States Attorney General determined that the contractor violated the employment provisions of the Immigration and Nationality Act
  • The contractor engaged in conduct or activities of a “serious and compelling nature” that disqualifies them from being a responsible contractor

Please note that, in most cases, violations of the Immigration and Nationality Act employment provisions are not reviewable in debarment proceedings.

Regardless of the reason for the proposed debarment, you may benefit from speaking with an experienced suspension and debarment attorney to understand your rights. They can help you explore all available avenues to refute and defend against the allegations.

Administrative Agreements: The Most Common Resolution

Many suspension and debarment matters resolve through administrative agreements rather than full exclusion.

An administrative agreement may require:

• Compliance program implementation
• Independent compliance monitor
• Ethics training
• Periodic reporting to the SDO
• Leadership restructuring
• Internal audit reforms

A strong mitigation package can prevent exclusion.

Administrative agreements are negotiated outcomes that preserve eligibility while addressing government concerns.

This is often the most strategic path forward.

What Is the Process of Debarment?

FAR § 9.406-3 outlines the general process of debarment, which includes the following:

  • Someone reports possible misconduct or a violation to an official.
  • The debarment office investigates the possible grounds for debarment.
  • Debarment proceedings begin. If the debarring officials conclude there might be grounds for debarment, they initiate the proceedings.
  • The contractor receives a Notice of Proposal to Debar, which they may respond to by filing an appropriate response within 30 days.
  • If the contractor’s response shows a genuine dispute of material fact, the parties submit further arguments and may appear before the debarring officials.
  • Final decision. After hearing arguments and reviewing the administrative record, the debarring officials issue a final decision.

If you receive a Notice of Proposal to Debar or any comparable notice, it is crucial to act quickly. You must file a response on time and sufficiently argue against the debarment to avoid being unnecessarily subjected to debarment. In some cases, the debarring officials allow parties to file an extension of the deadline to submit their response. Still, acting sooner rather than later is in your best interest.

Our attorneys have decades of experience helping contractors prepare and file the appropriate paperwork to protect their rights. We understand this is a confusing and frustrating time for you. Our goal is to safeguard and advocate for your best interests, helping ensure minimal disruption to your life.

1. Referral to the Debarring Official

Debarment proceedings begin with someone bringing a potential issue to the attention of the debarring official. Typically, there is an internal discussion or referral before someone notifies the debarring official.

This may arise from:

• Criminal investigation
• Contracting officer referral
• Inspector General findings
• Agency audit

For example, if there is a potential performance issue, the appropriate division or department may talk with the contractor about their performance. They may provide retraining opportunities or work with the contractor to develop a plan of action to remediate the issue. If this is unsuccessful, or the division believes it would be unsuccessful, they may refer the matter to the appropriate debarring office within that agency. For example, the Acquisition Integrity Office handles debarment matters within the Department of the Navy.

2. Investigation

Once the appropriate office receives a referral, they will assign a debarring official (a government attorney) to investigate the claim.

During the investigation, they may interview you, your coworkers, your boss, or any other parties that they feel would have beneficial information to understand the allegations. Initially, the debarring officials will investigate to determine if there is enough to proceed with the official debarment proceedings.

They may interview:

• Contractors
• Employees
• Supervisors
• Agency officials

3. Notice of Proposed Debarment

If the SDO believes grounds exist, you receive a Notice of Proposed Debarment.

You typically have 30 days to respond.

Failure to respond results in likely debarment.

4. Matters in Opposition (MIO)

You may submit:

• Written opposition
• Mitigation evidence
• Legal arguments
• Compliance reforms
• Character references

If there is a genuine dispute of material fact, further proceedings may occur.

5. Meeting with the SDO

After you respond to the allegations, the debarring officials will review the case and your arguments. Then, they will determine whether your statements in response create a genuine dispute of material fact that calls into question the debarment proposal’s merit.

The debarring official may ask you, your attorney, and other parties to appear before them to present further arguments and information. They may also request additional written statements to elaborate on the material in your objection. Sometimes, the debarring official may instruct another agency or department to investigate further and issue findings. The debarring official does not have to follow the recommendations of the other agency in making its final decision.

We have represented parties in debarment proceedings, including presenting oral and written arguments in defense of our clients. Because of the importance of the proceedings and the impact they may have on your livelihood, hiring an attorney you trust is essential. Our team operates with the highest standard of ethics and integrity, advocating for our clients’ best interests at all times.

6. Final Decision

After the proceedings, the debarring officials issue a final decision, either debarring you or declining to debar you. If applicable, the debarring official sends you the Notice of the Final Decision to Debar. It includes or refers to the original Notice of Proposal to Debar, states the reasons for the debarment, and indicates the length of the debarment.

You are either:

• Debarred
• Suspended
• Enter into an administrative agreement
• Or cleared

If the officials debar you, you are excluded from working on contracts with the entire executive branch of the government while the debarment is in effect. Additionally, you cannot receive certain types of federal funding, and there are limitations on your ability to work for federally-funded organizations.

An agency within the executive branch may continue or engage in new contract work with you in limited circumstances. Once the debarment period ends, you may be eligible to resume work with an agency within the executive branch and the other restrictions may be lifted.

How Much Time Do You Have to Respond to a Notice of Proposal to Debar?

You must respond to the Notice of Proposal to Debar by filing an objection within 30 days. In some cases, you may be able to request an extension of this deadline. Either way, it is in your best interest to address the notice as soon as you receive it.

Facing debarment can be incredibly stressful. Our attorneys seek to ease your burden by taking care of your legal paperwork and communicating with third parties on your behalf.

How the SDO Makes Decisions

Suspending and Debarring Officials evaluate:

• Integrity
• Cooperation
• Remediation
• Leadership accountability
• Compliance structure
• Risk of recurrence

They think in terms of risk containment.

They are not punitive actors.

They are protective actors.

Understanding how SDOs evaluate present responsibility is central to effective suspension and debarment defense.

How Suspension and Debarment Intersect with Security Clearance and Federal Employment Risk

Suspension and debarment rarely operate in isolation.

A criminal conviction, False Claims Act matter, tax liability, or integrity finding that triggers a present responsibility review may also affect:

• Individual security clearances
• Facility Security Clearances (FCL)
• Federal employment suitability
• Contracting officer responsibility determinations
• Continuous Evaluation monitoring
• Executive employment status

For contractors and executives who hold security clearances, allegations underlying a suspension or debarment proceeding may implicate multiple adjudicative guidelines, including financial considerations, personal conduct, foreign influence, or criminal conduct.

Security clearance eligibility is discretionary.

Like debarment, it is a credibility-based determination that evaluates cumulative record, mitigation, and rehabilitation.

For a comprehensive explanation of how individual clearance adjudications unfold under the thirteen guidelines and how cumulative records are evaluated over time, visit our Security Clearance Insider Hub.

Similarly, federal employees or contractor personnel may face:

• Proposed removals
• Indefinite suspensions
• Suitability actions
• Loss of access determinations
• Administrative investigations

These employment actions often arise from the same underlying allegations that triggered the suspension and debarment review.

To understand how federal employment discipline and suitability proceedings operate, and how they intersect with contracting eligibility, visit our Federal Employment Law & MSPB Defense Hub.

Fragmented representation across debarment, security clearance, and employment proceedings creates risk.

Statements made in one forum may be reused in another.

Mitigation arguments must be consistent across systems.

National Security Law Firm represents clients nationwide in suspension and debarment defense, security clearance matters, and federal employment law. We coordinate strategy across these overlapping systems to prevent short-term procedural responses from creating long-term exposure.

In federal systems, records are cumulative.

And strategic consistency matters.

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.

How Can I Tell If I Have Been Debarred?

If you are debarred, you should have received prompt notice. To check if you are subject to debarment, you can also check online on the System for Award Management’s (SAM) website.

Your name will be on the exclusion list on SAM while the debarment or suspension proceedings are pending. Additionally, your name will remain on the list once the suspension or debarment goes into effect. Your name may be removed from the list at the end of the suspension or debarment period.

Why Choose NSLF?

We are the trusted go-to law firm for debarment defense nationwide, with a 4.9-star Google rating.

Why clients choose us:

  • Based in Washington, DC, at the center of federal decision-making
  • Nationwide representation
  • Our attorneys are former military JAG officers, agency prosecutors, and government counsel
  • We understand how SDOs think—because we’ve worked with or as them
  • Founded by disabled veterans with a commitment to service
  • We bring in multiple attorneys through our weekly Attorney Review Board to analyze complex cases
  • We also handle related areas: FOIA, employment law, security clearance, and more
  • We hold security clearances, allowing us to assist in classified matters

No other law firm offers this combination of insight, access, and relentless advocacy.

Suspension and Debarment Blog Library

If you’ve been hit with a Notice of Proposed Debarment—or think one might be coming—this blog series is your roadmap through the storm. Whether you’re a contractor, grantee, or individual professional, understanding the legal process is the first step toward protecting your eligibility and reputation. Our team at National Security Law Firm has broken down every stage of the suspension and debarment process into clear, plain-English guides.

From understanding what debarment actually means, to knowing who the key decision-makers are, how to respond strategically, and what your rights are—you’ll find everything you need right here. These posts are designed to help you take control, act with confidence, and avoid the most common (and costly) mistakes.

Explore the articles below to better understand the legal terrain—and how to navigate it successfully.

Understanding Debarment: The Legal Process

Don’t Let One Notice Ruin Your Federal Career—Take Action Now

Every agency has its own process, and every debarment case is different—but the window to respond is always short. If you’ve been contacted by any federal agency about a proposed debarment, you need to act now.

NSLF can help you identify the issues, draft a powerful response, negotiate directly with the SDO, and protect your future.

Book a free consultation right now—no receptionist, no delay. Just pick a time online and speak directly with an attorney.

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