Suspension/Debarment

Summary of Changes

Basic Requirement

Areas To Be Examined

References

Questions For The Review

1. Are excluded parties participating in covered transactions?

2. Has the grantee included a term or condition requiring compliance with the Suspension and Debarment requirement in lower tiered covered transactions with subgrantees and procurement solicitations exceeding $25,000?

3. Has the grantee become aware of any new information following the award of a contract that an excluded party is involved in any covered transactions? Has the grantee promptly informed FTA in writing of this information?

Summary of Changes

Basic Requirement
Added statement that grantees are required to review the Excluded Parties Listing System (http://epls.arnet.gov/) before entering into any third party contracts.

Question 3
Added question regarding the need for grantees to notify FTA if they become aware after contract award that an excluded party is involved any covered transaction.

Basic Requirement

To prevent fraud, waste, and abuse in federal transactions, persons or entities, which by defined events or behavior, potentially threaten the integrity of federally administered programs, are excluded from participating in FTA-assisted programs. Grantees are required to ensure to the best of their knowledge and belief that none of the grantee’s “principals” (as defined in the governing regulation 49 CFR Part 29), subrecipients, and third-party contractors and subcontractors is debarred, suspended, ineligible, or voluntarily excluded from participation in federally assisted transactions. Grantees are required to review the Excluded Parties Listing System (http://epls.arnet.gov/) before entering into any third party contracts.

Areas To Be Examined

1. Disclosure

Disclosure to FTA if at any time a grantee or other covered entity learns that the circumstances have changed (new personnel, indictments, convictions, etc.).
2. Lower-tiered Transactions

The clause with this requirement needs to be included in third-party contracts and subcontracts exceeding $25,000.

References

1. 49 CFR Part 29 , "Governmentwide Debarment and Suspension (Non-Procurement)"

2. FTA Master Agreement

QUESTIONS FOR THE REVIEW

1. Are excluded parties participating in covered transactions?

Explanation

Each grantee is required to ensure to the best of their knowledge and belief that none of the grantee’s principals, third-party contractors, and subcontractors is suspended, debarred, ineligible, or voluntarily excluded from participation in federally assisted transactions.

Reason for the Question

49 CFR Part 29

Sources of Information

Information may be available in the regional office if written notice has been made.

Determination

The grantee is not deficient if it has ensured to the best of their knowledge and belief that excluded parties are not participating in a covered transaction. If not, the grantee is deficient.

Suggested Corrective Action

Ensure to the best of their knowledge and belief that excluded parties are not allowed to participate in covered transactions.

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2. Has the grantee included a term or condition requiring compliance with the Suspension and Debarment requirement in lower tiered covered transactions with subgrantees and procurement solicitations exceeding $25,000?

Explanation

Any subgrantee, third-party contractor, and sub-contractor whose contract exceeds $25,000 must agree to be in compliance with the Debarment and Suspension requirements. The prime contractor makes this agreement by submitting a bid that includes the clause found in the Appendix of the Best Practices Procurement Manual: Certification Regarding Debarment, Suspension, and Other Responsibility Matters – Lower Tier Covered Transaction. The grantee also must require that proposed subcontractors with subcontracts expected to exceed $25,000 similarly agree. It is not necessary to include a separate certification for this requirement.

Reason for the Question

49 CFR Part 29

Sources of Information

Solicitation documents and contract files are the primary source of this information. If the grantee has written procurement procedures, check that this requirement has been included. Be sure that the grantee is using the correct certification language.

Determination

The grantee is not deficient if the suspension/ debarment clause is included in procurement documents as required. If not, the grantee is deficient.

Suggested Corrective Action

The grantee must certify to FTA the intent to comply with the suspension/debarment requirements. If the grantee has written procurement procedures, they should be updated to include the requirement and submitted to FTA.

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3. Has the grantee become aware of any new information following the award of a contract that an excluded party is involved in any covered transactions? Has the grantee promptly informed FTA in writing of this information?

Explanation

In the event that a grantee becomes aware after the award of a contract that an excluded party is participating in a covered transaction, the grantee must promptly inform FTA in writing of this information.

Reason for the Question

49 CFR Part 29

Sources of Information

The grantee should be asked if they have become aware of a situation after the award of a contract in which an excluded party is participating in a covered transaction. If so, obtain a copy of the grantee’s written notification to FTA.

Determination

The grantee is not deficient if it has promptly informed FTA in writing after becoming aware that an excluded party is participating in a covered transacation. If not, the grantee is deficient.

Suggested Corrective Action

The grantee must promptly notify FTA in writing of the excluded party’s participation. A grantee may continue any covered transactions in existence at the time the party was debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded. However, the grantee may not renew or extend the covered transaction with the excluded party.