• New Regulations Clarify Effect of Debarment on Current Contracts
  • December 30, 2003 | Author: Patricia H. Wittie
  • Law Firm: Reed Smith LLP - Pittsburgh Office
  • Historically, debarments from federal contracting have operated prospectively in the sense that most agencies do not terminate ongoing contracts even in the face of a debarment. Under the basic FAR debarment rules, agencies are prohibited from soliciting offers from, and awarding new contracts to, debarred or suspended contractors (FAR 9.405). However, they have been free to leave existing contracts in place, allowing performance to continue (FAR 9.405-1(a)), and to continue placing orders against existing contracts even though the contractor has been debarred at some time after award (FAR 9.405-1(b)).