[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-68.225]

[Page 440-441]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-68--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) 
AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)
--Table of Contents
 
                   Subpart 105-68.2--Effect of Action
 
Sec. 105-68.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 105-68.215 or Sec. 105-68.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded

[[Page 441]]

from the covered transaction (See appendix B of these regulations), 
unless it knows that the certification is erroneous. An agency has the 
burden of proof that a participant did knowingly do business with a 
person that filed an erroneous certification.

[60 FR 33041 and 33059, June 26, 1995]