[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR9.405-2]



[Page 163-164]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 9_CONTRACTOR QUALIFICATIONS--Table of Contents

 

          Subpart 9.4_Debarment, Suspension, and Ineligibility

 

Sec. 9.405-2  Restrictions on subcontracting.



    (a) When a contractor debarred, suspended, or proposed for debarment 

is proposed as a subcontractor for any subcontract subject to Government 

consent (see subpart 44.2), contracting officers shall not consent to 

subcontracts with such contractors unless the agency head states in 

writing the compelling reasons for this approval action. (See 9.405(b) 

concerning declarations of ineligibility affecting subcontracting.)

    (b) The Government suspends or debars contractors to protect the 

Government's interests. By operation of the clause at 52.209-6, 

Protecting the Government's Interests When Subcontracting with 

Contractors Debarred, Suspended or Proposed for Debarment, contractors 

shall not enter into any subcontract in excess of $25,000 with a 

contractor that has been debarred, suspended, or proposed for debarment 

unless there is a compelling reason to do so. If a contractor intends to 

subcontract with a party that is debarred, suspended, or proposed for 

debarment as evidenced by the party's inclusion in the EPLS (see 9.404), 

a corporate officer or designee of the contractor is required by 

operation of the clause at 52.209-6, Protecting the Government's 

Interests when Subcontracting with Contractors Debarred, Suspended, or 

Proposed for Debarment, to notify the contracting officer, in writing, 

before entering into such subcontract. The notice must provide the 

following:

    (1) The name of the subcontractor;

    (2) The contractor's knowledge of the reasons for the subcontractor 

being in the EPLS;

    (3) The compelling reason(s) for doing business with the 

subcontractor notwithstanding its inclusion in the EPLS; and



[[Page 164]]



    (4) The systems and procedures the contractor has established to 

ensure that it is fully protecting the Government's interests when 

dealing with such subcontractor in view of the specific basis for the 

party's debarment, suspension, or proposed debarment.

    (c) The contractor's compliance with the requirements of 52.209-6 

will be reviewed during Contractor Purchasing System Reviews (see 

subpart 44.3).



[54 FR 19815, May 8, 1989, as amended at 56 FR 29127, June 25, 1991; 59 

FR 67033, Dec. 28, 1994; 60 FR 33066, June 26, 1995; 60 FR 48237, Sept. 

18, 1995; 68 FR 69251, Dec. 11, 2003; 69 FR 76349, Dec. 20, 2004]