Many Grant Recipients get tripped up by the requirements for suspension and debarment compliance.

It’s every kid’s nightmare. That day when their “friend” says “I don’t like you anymore”! This unpleasant situation can also happen to organizations, governmental units, and individuals.

It’s called “suspension and debarment.”

It is when the Federal Government says “I don’t like you anymore!”

Sometimes, we make up with each other. That’s called “suspension.”

Sometimes, we don’t. That’s called “debarment.”

As a Grant recipient, you can’t let any Federal money go out to any person or party who is suspended or debarred.

Guide to Suspension and Debarment Compliance

Organizations, governmental units, and individuals can be excluded from participation in federal awards, subawards, and certain types of federal contracts if they are suspended, debarred, or otherwise excluded from participation in federal spending.

It is the responsibility of the grant recipient and subrecipient to make sure that no federal funds flow out to an excluded person or organization.

One of those ways to ensure compliance is to check SAM.gov to see if the party is excluded; however, it is not the only way to demonstrate compliance.

The rules for suspension and debarment live in 2 CFR Part 180

In subsection 180.300, three compliance methods are listed, one of which is checking in SAM.gov:

§ 180.300 What must I do before I enter into a covered transaction with another person at the next lower tier?

When you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by:

(a) Checking SAM Exclusions; or

(b) Collecting a certification from that person; or

(c) Adding a clause or condition to the covered transaction with that person.

Additionally, you do not need to check 100% of procurement transactions. In subsection 180.220 it says that procurement contracts over $25,000 are the ones that need to be checked for suspension and debarment compliance:

§ 180.220 Are any procurement contracts included as covered transactions?

(a) Covered transactions under this part—

(1) Do not include any procurement contracts awarded directly by a Federal agency; but

(2) Do include some procurement contracts awarded by non-Federal participants in nonprocurement covered transactions.

(b) Specifically, a contract for goods or services is a covered transaction if any of the following applies:

(1) The contract is awarded by a participant in a nonprocurement transaction that is covered under § 180.210, and the amount of the contract is expected to equal or exceed $25,000.

(2) The contract requires the consent of an official of a Federal agency. In that case, the contract, regardless of the amount, always is a covered transaction, and it does not matter who awarded it. For example, it could be a subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in the appendix to this part.

(3) The contract is for Federally-required audit services.

(c) A subcontract also is a covered transaction if,—

(1) It is awarded by a participant in a procurement transaction under a nonprocurement transaction of a Federal agency that extends the coverage of paragraph (b)(1) of this section to additional tiers of contracts (see the diagram in the appendix to this part showing that optional lower tier coverage); and

(2) The value of the subcontract is expected to equal or exceed $25,000.

How do I check for suspension and debarment?

SAM.gov contains the “Exclusions” database, along with good training resources on how to look up and document your compliance with suspension and debarment regulations.

Make sure when you search SAM.gov that you are looking at the Exclusions database and NOT the general search for registered entities.

Here are some additional training resources:

How do I check for active exclusions?

How do I print or download verification that an entity has no active exclusions?

Grant recipients can find out who is excluded from participation by checking the Exclusions database.

Download the SAM.gov Quick Start Guide on how to search for exclusions.

Ready to Deepen Your Understanding of Federal Funding?

Would you like to be a better grant writer or manager?

Deepen your understanding of procurement and the single audit for federal grants?

We have another grant training seminar coming soon.

Click here to get all the details!

Hope to see you there!

Rachel Werner, MPA, GPC, PMP

MyFedTrainer Principal, Compliance Champion