Causes for Suspension Under FAR 9.407-2: What Triggers Action Before a Conviction
For trade contractors and estimators bidding on federal projects, exclusion from government procurement can happen long before a courtroom trial concludes. Under federal procurement rules, an agency does not have to wait for a formal criminal conviction or a final civil verdict to pause a company's eligibility. Understanding how federal officials evaluate immediate threats to government operations is vital for protecting your enterprise.
What Standard of Proof Triggers a Federal Suspension?
Under FAR 9.407-2 Causes for suspension, the suspending and debarring official may place a contractor under suspension based on "adequate evidence" rather than a completed conviction. Adequate evidence represents a preliminary evidentiary bar that allows the government to act quickly when serious irregularities arise on public projects.
The regulation explicitly provides that an indictment for any of the specified causes constitutes adequate evidence for suspension. If a federal grand jury issues an indictment against an enterprise or its leadership, the suspending and debarring official already possesses sufficient grounds under the regulation to initiate an immediate exclusion across all executive agencies.
Which Core Criminal Offenses and Integrity Violations Are Named?
FAR 9.407-2 outlines several specific offenses and actions that can prompt an immediate suspension upon adequate evidence. These causes address fundamental issues of business honesty and project execution:
- Commission of fraud or a criminal offense connected with obtaining, attempting to obtain, or performing a public contract or subcontract.
- Violation of Federal or State antitrust statutes relating to the submission of offers.
- Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating Federal criminal tax laws, or receiving stolen property.
- Violations of 41 U.S.C. chapter 81, Drug-Free Workplace, shown by failure to comply with clause 52.226-7 or workplace convictions indicating a failure to make a good faith effort under section 26.504.
- Commission of any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a Government contractor or subcontractor.
Prime contractors monitoring their supply chain often cross-reference these risk areas with internal compliance measures, such as those discussed in our overview of subcontracting with debarred firms.
How Do Failure-to-Disclose Rules Expose Federal Contractors?
A contractor does not have to commit affirmative fraud on an active jobsite to face suspension. Under paragraph (a)(8) of the regulation, suspension can arise from the knowing failure by a principal to timely disclose credible evidence to the government.
This disclosure requirement remains active until 3 years after final payment on any Government contract awarded to the contractor. Principals must timely report credible evidence regarding:
- Violations of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code.
- Violations of the civil False Claims Act (31 U.S.C. 3729-3733).
- Significant overpayment on the contract, excluding overpayments that result from contract financing payments defined in FAR 32.001.
Failing to disclose these matters in connection with the award, performance, or closeout of a prime contract or an associated subcontract creates independent exposure to suspension. Similar compliance expectations appear across major procurement rules, including the contractor code of ethics rule.
What Specific Rules Cover Trade Practices, Taxes, and Labels?
Federal procurement rules address specific commercial behaviors beyond direct jobsite performance. Under FAR 9.407-2, suspension can be initiated when there is adequate evidence of:
Intentionally affixing a "Made in America" inscription (or similar phrase) to an item sold in or shipped to the United States or its outlying areas when the product was not made there, pursuant to Section 202 of the Defense Production Act (Public Law 102-558). The regulation also covers committing an unfair trade practice as defined in section 9.403 under Section 201 of the Defense Production Act (Pub.L. 102-558).
Contractors can also face suspension for delinquent Federal taxes in an amount that exceeds $10;000, evaluated using the determination criteria set forth in FAR 9.406-2(b)(1)(v). In addition, a determination of a false certification under FAR clause 52.209-13, Violation of Arms Control Treaties or Agreements-Certification, constitutes an explicit trigger under the rule.
Can an Official Suspend for Matters Not Specifically Listed?
Yes. The regulation includes broad authority to address unanticipated misconduct. Under FAR 9.407-2(c), the suspending and debarring official may, upon adequate evidence, suspend a contractor for any other cause of so serious or compelling a nature that it affects the present responsibility of a Government contractor or subcontractor. This catch-all ensures federal procurement officials can act whenever evidence demonstrates an immediate risk to government business.
Sources
9.407-2 Causes for suspension. | Acquisition.GOV
Published November 9, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.