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Practitioner Insights: Suspension and Debarment Authority

Published in Bloomberg BNA's Daily Environment Reporter
Article | May 1, 2017

Article reports on suspension and debarment actions—exclusions from contracts with the federal government and federal grants and loans based on activities and misconduct that calls into question a company's integrity. Such exclusions are frequently a lesser known collateral consequence of misconduct. Triggers for exclusion actions can include integrity- or honesty-related offenses and mandatory debarment requirements as part of a federal regulation like the Clean Air Act or Clean Water Act. Exclusions can impact both direct government contractors, and entities that service or subcontract to a direct government contractor. The article notes that awareness of exclusion-triggering activity, having a solid crisis plan and proactive actions to negotiate an administrated agreement with the respective federal entity may help mitigate the impact of suspension or debarment.

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