Suspension and Debarment: Characteristics of Active Agency Programs and Governmentwide Oversight Efforts

Spending on contracted goods and services was more than $517 billion in 2012. To protect the government's interests, federal agencies are required to award contracts only to responsible sources. One way to protect the government's interest is through the use of suspensions and debarments, which are actions taken to exclude firms or individuals from receiving contracts or assistance based on various types of misconduct. A suspension is a temporary disqualification from government contracting, while a debarment is an exclusion for a specified period. This testimony is based on reports GAO issued in August 2011 and September 2012 and addresses (1) characteristics of suspension and debarment programs at selected agencies and (2) governmentwide efforts to oversee and coordinate the use of suspensions and debarments. In 2011, GAO assessed suspension and debarment programs at 10 agencies from among those having more than $1 billion in contract obligations in fiscal year 2009. In 2012, GAO reviewed the extent to which DOD had processes for identifying and referring cases of contractor misconduct for possible suspension and debarment. GAO is not making any new recommendations, but made several recommendations in prior reports on this topic. Agencies agreed with those recommendations and several have taken steps to implement them.