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Topic 5. Debarment and Suspension
Debarment
Debarment is a sanction that in most cases excludes the program participant from any participation in the nonprocurement programs of any Federal agency, including VA’s loan guaranty program.
Note: Occasionally debarment is used to exclude the participant from only certain types of transactions.
Debarment Time Period
Debarment is effective for a period appropriate to the seriousness of the cause. Often a period of 3 years is deemed appropriate.
Suspension
Suspension has the same impact as debarment, but is imposed on a temporary basis, pending the outcome of
investigative
legal, or
debarment proceedings.
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Note: Suspension can be followed by debarment if the results of the proceedings warrant.
Suspension Time Period
Suspension generally does not exceed 18 months. It is imposed for a temporary period pending
investigative
legal, or
debarment proceedings.
Note: An additional period of debarment may follow.
Geographic Scope of Exclusion
The debarred or suspended participant is excluded from targeted activities in all locations.
Debarred Loan Guaranty Participants
All loan guaranty program participants debarred by VA are listed in GSA’s List of Parties Excluded From Federal Nonprocurement Programs. Most of these debarments are Government-wide.
The GSA list contains government-wide debarments of parties who cannot participate in the nonprocurement programs of any Federal agency.
Participant is an Entity
Any program participant (individual or entity) and/or affiliate can be debarred or suspended. If the participant is an entity, the sanction can be imposed against the
entire organization
a certain part of the organization, or
only certain individuals.
VA Regulations
VA can impose debarments or suspensions based on any of a multitude of causes outlined in VA regulations
38 CFR 44.305, and
38 CFR.44.405.
Causes for Debarment or Suspension
The regulations authorize VA to debar or suspend participants for "Any other cause of so serious or compelling a nature that it affects the present responsibility of a person." These causes include, but are not limited to
conviction of, or civil judgment for, fraud, embezzlement, theft, forgery, falsification or destruction of records, commission of an offense evidencing serious lack of integrity
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violation of the terms of a public agreement or transaction so serious as to affect the integrity of an agency program
knowingly doing business with a debarred, suspended, ineligible, or voluntarily excluded person, or
failure to pay debts owed to the Federal Government.