Number IPP 3
Dated:08/28/2012
Replaces: 10/6/06

Internal Policy and Procedures

Federal Debarment

POLICY:

Federal Executive Order (E.O.) 12549 "Debarment and Suspension” requires that all contractors receiving individual awards, using federal funds for $25,000 or more, and all sub recipients certify that the organization and its principals are not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency from doing business with the Federal Government. Transactions on funds 142 thru 152 (most notably 144) must be cleared of Federal Debarment before an award is made.
Delegated agents will maintain debarment status documents in their department for items purchased within the scope of their delegation.

No award is to be made before debarment status has been reviewed and approved.

DEFINITIONS:

“Debarment Certification”: A statement from a vendor or service provider that their company, and it’s principals have not been debarred, suspended, proposed for debarment, declared ineligible, are not in the process of being debarred, or are voluntarily excluded from conducting business with a federal department or agency of the federal government. This certification can take the form of a signed letter, or a signature block within a procurement document or ASSA.

“Checking debarment status on the web”: The process by which an agent checks the federal website (sam.gov) to see if a vendor is on the government list of debarred vendors.

PROCEDURES:

  1. The Special Conditions of Bid documents contain debarment language so vendors are notified of the debarment requirements, and are provided the format by which they can certify their status. At time of bid, suppliers will be required to certify their debarment status as a mandatory element of the bid or proposal response.
  2. Purchases in excess of $25,000 using an existing waiver where no bidding document was involved require that the agent check the federal debarment website (sam.gov) for a favorable debarment status before an order is issued if federal funds are being used.  
  1. As an element of every Academic Support Services Agreements (ASSA), contracts will include a certification statement and a signature block where the contractor can certify their debarment status.

  2. For releases over $25,000 using federal funds against established contracts, waivers, or ASSA’s where a certification is already on file, the federal debarment website (sam.gov) will be checked to verify the vendors continued favorable debarment status before an order will be released. When the web site is checked, staff must print a copy of the debarment report from the website, and include it in the bid jacket, or file it in the Vendor File in cases where no bid jacket is present (see IPP #42).

  3. Vendors known to be debarred will have their vendor status changed to “inactive” and “ineligible” in the master purchasing services vendor file.

  4. If the vendor does not provide debarment certification, or if the web site is checked and the vendor is debarred, the purchasing agent will place a hold on the award process and immediately verify the accuracy of the website report by gathering information pertaining to the reasons for debarment from the vendor, and sam.gov.  Once all information has been gathered, and verified, the agent must summarize and report the findings to the Director of Purchasing Services, and await further award instructions. In any case, award will not be made for purchases in excess of $25,000 that have federal funding until such time as the supplier is no longer debarred or suspended.

7. If it is determined that the vendor is to be recorded in University record as being debarred, the agent will request that administrative support staff make the vendor ineligible and inactivate them in the vendor file. A characteristic DB will be used to show debarment ineligibility. With the approval of the Director, the agent may then award to the next lowest responsible vendor in accordance with established procurement rules.

REFERENCES:

Quick start guide for search functionality Sam.gov
IPP #42 (Agreements, Leases, Licenses (ALL) Files
UW Purchasing Special Conditions of Bid
Guidelines for SAM (System for Award Management) (change from EPLS)
OMB Circular A-133:
Debarment Certification Letter