Government Contracts Monitor

GAO Issues New Report on Government-Wide Suspensions and Debarments

June 23, 2014

A new report by the U.S. Government Accountability Office (GAO) finds that the number of suspensions and debarment actions government-wide is up more than 162% over the past five years. The increase is even greater – a stunning 1,326% -- for six agencies previously criticized by GAO: Commerce, HHS, DOJ, State, Treasury and FEMA. These agencies began to experience this notable increase in 2011, after they began taking actions to address program weaknesses identified by GAO such as inadequate staff, policies and procedures, and referral processes.

In this new report, GAO finds that the Interagency Suspension and Department Committee (ISDC) has increased its efforts to coordinate government-wide suspension and debarment efforts by promoting best practices and coordinating mentoring and training activities, including cosponsoring an annual debarment workshop with the Council of the Inspectors General on Integrity and Efficiency. For example, the ISDC regularly distributes information on new reported potential cases, holds monthly meetings and maintains an online library of documents aimed at promoting standardization. GAO notes that ISDC officials cited “robust participation in the ISDC, including agencies with mature suspension and debarment programs,” as facilitating mentoring and program improvements.

Interestingly, GAO notes that officials at the six agencies previously criticized emphasized different factors in addressing weaknesses in their programs. For example, Commerce, State and Treasury officials cited improved coordination between the SDO and the Office of the Inspector General (IG), coupled with increased training and awareness, while HHS officials cited the IG providing additional resources for training investigators and auditors on how to make suspension and debarment referrals, and DHS attributed the increases at FEMA to having a centralized suspension and debarment office, a directive establishing common standards, increased staffing and training. Justice cited the Attorney General’s January 2012 memorandum to all litigating authorities and the Director of the FBI, reminding them to consider whether the facts of a case could be used as the basis for any exclusion or debarment, and to coordinate with agency suspension and debarment authorities. VA’s Debarment and Suspension Committee cites to its staff of 10 that reviews all referrals, conducts fact-finding, and presents facts and recommendations to the SDO.

GAO attributes the increase in the number of suspension and debarment actions government-wide to steps these agencies have taken, and the ISDC’s effectiveness in promoting best practices, mentoring and training, and help in coordinating lead agency responsibility when multiple agencies have an interest in pursuing suspension or debarment of the same entity.

GAO notes, however, that “ISDC officials do not consider the overall number of suspensions and debarments as the only measure of success, and emphasized that increased suspension and debarment activity has been coupled with agencies’ increased capability to use suspension and debarment appropriately and adhere to the principles of fairness and due process as laid out in the governing regulations.” This is particularly important at a time when certain forces are pushing for broader and more expansive and binding use of suspension and debarment, and hopefully will provide support for those urging a more balanced approach.

Hopewell Darneille is the attorney responsible for the content of this article.