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    Government Contracting Database

    Debarment – Administrative Settlement

    The process of opposing an administrative debarment is time-consuming and frustrating. Government agencies take their responsibility to protect the government from non-responsible contractors seriously. Unless you firmly believe that the government will not be able to sustain a proposed debarment, it will be worth your while to explore the possibility of an administrative settlement with the debarring official. An administrative settlement usually concedes that there is a basis for debarment, but avoids debarment of the company through an agreement to take affirmative steps to rectify the circumstances which gave rise to the basis for debarment. Usually, an administrative settlement requires the contractor to report regularly to the debarring official, to allow oversight of the company’s activities, and to provide training to all employees in matters of ethics and government procurement practices. Although the agreement generally is effective for three years, the company is free to enter into government contracts and has the opportunity to survive the otherwise disastrous consequences of debarment. The government is not required to resolve debarment matters through agreement and will generally only consider such agreements where the contractor has taken responsibility for its actions, has cooperated with the agency, and has demonstrated present responsibility. 

    Updated: July 22, 2018

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