of the Director, Office of Operations and Finance, unless the agreement falls within one of the following exceptions:

(1) Is with a USDA computer center; (2) Is with another Federal agency and the ADP service; involved will be accomplished at a USDA computer center;

(3) [Reserved]

(4) Is for services where the total dollar value of the ADP services involved does not exceed $25,000.

(d) Any agreement entered into by any agency, service, or staff office of the U.S. Department of Agriculture with other Government departments, agencies, corporations, or other independent entities or organizations of the Federal Government, State, or local governments, as well as nonprofit corporations, universities, and other organizations for automatic data processing services, equipment, training, facilities cr other ADP resources or materials, directly or indirectly (as a part of an agreement whose primary purpose is other than automatic data processing), must have the written approval of the Director of Information Systems unless the agreement falls within one of the following exceptions:

(1) Is with a USDA computer center; (2) Is with another Federal agency and the ADP service involved will be accomplished at a USDA computer center;

(3) Is with NASA for work under the ERTS program;

(4) Is for services where the total dollar value of the ADP services involved does not exceed $25,000.

[37 FR 22794, Oct. 25, 1972, as amended at 37 FR 26718, Dec. 15, 1972; 40 FR 6975, Feb. 18, 1975; 41 FR 26009, June 24, 1976; 41 FR 36493, Aug. 30, 1976]

Subpart 4-1.6—Debarred, Suspended, and Ineligible Bidders

AUTHORITY: 16 U.S.C. 476, 16 U.S.C. 551, 16 U.S.C. 472(a).

§ 4-1.600 Scope of subpart.

This subpart supplements and implements § 1-1.600 of this title. It prescribes policies and procedures relating to debarment, ineligibility, or suspension of bidders for any cause. It is

(a) The "Debarring Officer" is the agency or department official authorized by the Secretary to invoke debarment or suspension actions under this subpart. The Director, Office of Operations and Finance, is the Debarring Officer for the Department (Department Debarring Officer) in connection with all procurement and contracting under the Federal and Agriculture Procurement Regulations. Debarment authority for the following activities has been delegated by the Department Debarring Officer to the appropriate agency.

(1) Timber sales pursuant to 16 U.S.C 476 and 16 U.S.C. 472a.

(2) Food Safety and Quality Service-School lunch and surplus removal pursuant to 42 U.S.C. 1755 and 7 U.S.C. 612c.

(b) Debarring Officers are authorized to invoke debarment or suspension measures in accordance with the procedures of this subpart except as authorities may be specifically reserved to the Department Debarring Officer.

[40 FR 6975, Feb. 18, 1975, as amended at 43 FR 37455, Aug. 23, 1978]

§ 4-1.602 Establishment and maintenance of a list of concerns or individuals debarred, suspended, or declared ineligible.

(a) The Office of Operations and Finance maintains a consolidated list of firms and individuals debarred or sus

pended on the bases stated in § 11.602-1 of this title to whom contracts will not be awarded and from whom bids will not be solicited. The list is made available to all contracting officers through the issuance of Office of Operations and Finance Memorandum No. 24, and supplements thereto. The list shows the authority for and terms of the debarment or suspension.

(b) Disclosure. The list is divided into two sections and appendices. The first section is a list of debarred and ineligible firms and individuals. The second section is a list of suspended firms and individuals whose cases are under investigation. The appendices consist of background material which is attached to the list for convenience. The section listing debarred and ineligible firms and individuals may be released to the public only by authorized contracting officers in response to a specific request. The section on suspended firms and individuals and all correspondence relating thereto shall be released to the public only by the Office of Operations and Finance upon specific request and only after a determination that such information does not contain material the release of which would constitute a clearly unwarranted invasion of personal priva

cy.

[40 FR 6975, Feb. 18, 1975]

§ 4-1.602-1 Bases for entry on the debarred, suspended, and ineligible list. Entry shall be made on the list on the basis stated in § 1-1.602-1 and as follows:

(a) Those the Debarring Officer determines to debar administratively for any of the causes and under all the appropriate conditions listed in § 1-1.604.

(b) Those the Debarring Officer determines to suspend administratively for the reasons, and under the conditions set forth in § 1-1.605.

(c) Those determined in accordance with section 3(b) of the Buy American Act (41 U.S.C. 1ûb(b)) to have failed to comply with the provisions of section 3(a) of that Act under any contract containing the specific provision required by said section 3(a) and made by the agency for construction, alteration, or repair of any public building or public work. Debarment is required

only where there is some degree of culpability on the part of the contractor, and not in cases of bona fide misunderstanding or inadvertence. Any violation must, however, be reported to the Department Debarring Officer. (d) Those notified of debarment or suspension by the Commodity Credit Corporation under the regulation

stated at 7 CFR Part 1407.

[29 FR 14264, Oct. 16, 1964, as amended at 35 FR 3680, Feb. 25, 1970]

84-1.603 Treatment to be accorded firms or individuals in debarred, suspended, or ineligible status.

Administration of current contracts in all phases may be continued, and payment of funds due may be made, notwithstanding the listing of a contractor, unless otherwise directed by the Debarring Officer.

§ 4-1.604 Causes and conditions applicable to determination of debarment by an executive agency.

The Debarring Officer is the authorized representative of the Agency Head for determinations required by § 1-1.604.

§ 4-1.604-1 Procedural requirements relating to the imposition of debarment.

(a) Initiation of debarment action. The firm or individual and its known affiliates concerned shall be furnished with a written notice of the proposed debarment stating as a minimum:

(1) That it is proposed to debar the firm or individual,

(2) The scope thereof as to affiliates, (3) The reasons for the proposed debarment,

(4) The period of the proposed debarment,

(5) That the debarment shall be effective throughout the Department,

(6) Whether the debarment shall extend to all procurement and sales contracts,

(7) That the debarment determination shall become final and effective 30 days after receipt of this notice, unless the firm or individual mails or otherwise furnishes to the Debarring Officer a written request for further consideration in his behalf and within a reasonable time thereafter (60 days, unless the Debarring Officer grants a

60-119 0-80--19

further period of time) furnishes such information as he wishes considered in his behalf,

(8) Whether or not the firm or individual is temporarily suspended pending final debarment determination. Where a timely request for further consideration has been received, the firm or indivdiual and its known affiliates concerned shall be notified in writing of the decision of the Debarring Officer on the proposed debarment. If the decision provides for debarment, it shall set forth the period, scope, and effective date thereof and of the right to appeal. In the event of appeal, debarment shall be deferred pending the decision of the Board of Contract Appeals. However, the firm or individual may be temporarily suspended pending final debarment determination. A copy of each debarment notice and each suspension notice shall be provided the Department Debarring Officer.

(b) Appeals. Appeals may be taken from decision of Debarring Officers within 30 days after receipt by the firm or individual of a decision to debar. The manner of filing appeals and the procedure on appeal shall be governed by the rules of procedure of the Department of Agriculture Board of Contract Appeals. See 7 CFR Part 2400, which contains the authorization by the Secretary to such Board to handle debarment proceedings.

[29 FR 14264, Oct. 16, 1964, as amended at 35 FR 3680, Feb. 25, 1970; 35 FR 17181, Nov. 7, 1970]

§ 4-1.605 Suspension of bidders.

§ 4-1.605-1 Causes and conditions under which executive agencies may suspend contractors.

(a) The Debarring Officer may suspend a firm or individual:

(1) Under causes and conditions stated in § 1-1.605-1;

(2) When there is pending a final decision on a debarment determination after notice of debarment, or proposed debarment, has been sent the firm or individual; or

(3) For other cause of such serious and compelling nature, affecting responsibility as a Government contrac

tor, as may be determined by the Dobarring Officer to justify suspension.

(b) Suspension of a firm or individual by any Debarring Officer shall operate to suspend such firm or individual throughout the Department.

§ 4-1.605-2 Period and scope of suspension.

(a) Period of suspension. Suspensions for other than causes and conditions set forth in § 1-1.605-1(a)(1) shall not exceed 90 days unless

(1) Notice of debarment, or proposed debarment, has been given, or

(2) The Department Debarring Officer approves a longer period, provided, however, that in no event shall such suspensions exceed one year.

Such suspensions shall be for 90-day periods, and additional periods of 90day suspensions shall be preceded by notice thereof to the firm or individual.

§ 4-1.605-4 Notice of suspension.

(a) The firm or individual concerned shall be furnished a written notice by the Debarring Officer of the suspension within 10 days after the effective date of the suspension. The notice of the suspension shall state:

(1) That the suspension is based on: (i) Reasons stated in the notice of debarment, or proposed debarment, from which there is an appeal or request for further consideration pending, or

(ii) On information that the firm or individual has committed irregularities of a serious nature in business dealings with the Government or that the suspension is based on irregularities which seriously reflect on the propriety of further dealings of the firm or individual with the Government together with a description of the nature of those irregularities, in general terms, without disclosing the Government's evidence;

(2) That the suspension is for a temporary period pending the completion of an investigation and such legal proceedings as may ensue;

(3) That bids and proposals will not be solicited from the firm or individual and if received will not be considered, and awards of contracts may not be made unless it is determined to be in

the best interest of the Government by the Debarring Officer; and

(4) That the suspension is effective throughout the Department.

(b) All inquiries concerning suspended contractors shall be referred to the Debarring Officer concerned for appropriate action. Where a matter has been referred to the Department of Justice, the Department shall not give further information to the contractor or his representative concerning the reasons for suspension beyond that stated in the notice of suspension until the Department of Justice has been advised of the inquiry and acquiesces in any such disclosure.

§ 4-1.606 Agency procedure.

(a) Limited debarment or suspension. Where it is determined to debar or suspend a concern the responsible Debarring Officer shall decide whether the debarment or suspension should extend to procurement contracts or to sales contracts or to both. If the debarment or suspension is limited to either procurement contracts or to sales contracts or is otherwise restricted, the listing should so indicate.

(b) Requests for debarment or suspension action. (1) When a procuring activity becomes aware of possible irregularities which may be sufficient cause for suspension or debarment of a firm or individual, the case shall be immediately referred through agency headquarters to the Debarring Officer for appropriate determination and action. The case shall be accompanied by a complete statement of facts with recommendations for action.

(2) Where the statement of facts indicates the irregularities to be possible criminal offenses, or for any reason further investigation is considered necessary, the Office of Inspector General shall be requested to assume the investigation. Exceptions are bribery and forgery cases required to be reported directly to the Federal Bureau of Investigation and the Secret Service Division, Department of the Treasury. The Office of Inspector General will advise the Debarring Officers whenever the evidence of criminal offense is such that they should be placed on notice for possible action to (i) postpone contract awards pending the ob

taining of further evidence, or (ii) take immediate suspension action.

(c) Notifying General Services Administration of debarments or suspensions. A copy of all notices of debarment or suspension actions, including removals of debarment or suspensions, taken by the Department shall be furnished, at time of issuance, to the Department Debarring Officer for transmittal to the General Services Administration.

(d) Removal of debarment or suspension. The Debarring Officer shall remove debarments or suspensions which he has initiated, and either effected by him or a Board of Contract Appeals, prior to the expiration of the stated period thereof where he finds that the firm or individual has demonstrated a willingness and ability to perform responsiblility as a Government contractor.

§ 4-1.650 Foreign firms or individuals. § 4-1.650-1 Purpose.

This section prescribes policies and procedures for Department cooperation with the Economic Defense Advisory Committee (EDAC), and other measures to safeguard the interests of the Department in its contractual relationships with foreign firms and individuals. The Department of Commerce publishes quarterly a comprehensive list of foreign individuals and firms (a) who are subject to administrative action by one or more Federal agencies, or (b) with whom all persons in the United States are prohibited from doing business. The principal purpose of this publication, called the Economics Defense List (EDL), is to control exports of strategic materials. The administrative actions which form the basis for inclusion in the EDL include denial of Government contracts, export licenses, benefits under AID programs, technical information, visas, loans, etc. The EDL also includes persons or firms who are "designated nationals" under Foreign Asset Control Regulations. All persons in the United States are prohibited from doing business with designated nationals. In addition to participation in the EDAC program, this section provides for screening of information provided by

the Department of Defense, the General Accounting Office, and the General Services Administration, to identify undesirable potential contractors, cooperators, or grantees.

[31 FR 7819, June 2, 1966]

§ 4-1.650-2 Policy.

The policy of the Department is to cooperate in the EDAC program by (a) furnishing to the Committee the names of undesirable foreign individuals and firms involved in Department programs, and (b) to exclude from Department contractual relationships, as defined in § 4-1.650-3, undesirable foreign individuals and firms included in the EDL, except where essential activities would be substantially impaired thereby. It is the policy to similarly exclude undesirable foreign persons or firms reported in accordance with § 41.650-4, or included in the other lists referred to in § 4-1.650-5.

[31 FR 7819, June 2, 1966]

As used herein a foreign firm or individual is one located or submitting a bid from an address outside the United States, including Puerto Rico, American Samoa, the Canal Zone, and the Virgin Islands. The term also includes firms known to have their principal places of business outside those areas regardless of the point from which bids are submitted. Contractual relationships, as used herein, means all purchases, sales, leases, cooperative agreements and grants, except overthe-counter purchases of $500 or less. Approval of subcontracts refers to approval which the prime contractor is required by his contract to obtain from the contracting agency.

[31 FR 7819, June 2, 1966]

§ 4-1.650-4 Reports.

Agencies of the Department will report to the Department Debarring Officer names of foreign individuals or firms which are considered on the basis of substantial evidence to have been involved in:

(a) Violations of laws or regulations administered by the agency relative to production, processing, labeling, grading, transportation, purchase, sale, or

distribution of an agricultural commodity, insecticide, or other products; (b) Diversion of agricultural commodities in violation of any contract with, or law or regulation administered by the agency;

(c) Fraudulent or unethical conduct, gross negligence, action adverse to U.S. Programs; or

(d) Other improprieties in connection with conduct of foreign trade involving the program mission of the agency, where the action reported is considered, sufficient to render the firm or individual unsatisfactory as a trading partner for the United States. The report should include a full explanation of the facts and circumstances upon which it is based, including copies of documents where applicable. [31 FR 7819, June 2, 1966]

§ 4-1.650-5 Action by Department Debarring Officer.

The Department Debarring Officer will:

(a) Transmit the information reported under § 4-1.650-4 to the Economic Defense Advisory Committee, through the Department liaison representative.

(b) Retain on file the information reported under § 4-1.650-4.

(c) Maintain on file a current copy of the Economic Defense List, and the lists of offshore suppliers to whom contracts will not be awarded published by the Department of Defense.

(d) Take further action as indicated in § 4-1.650-6 whenever it is proposed to enter a contractual relationship with a foreign individual or firm. [31 FR 7819, June 2, 1966]

§ 4-1.650-6 Clearance of foreign firms or individuals.

(a) Checking published lists. Agencies will check the Department list of debarred and suspended bidders (Office of Operations and Finance Memorandum No. 24) to see if the firm or individual proposed for a contractual relationship is listed thereon. This includes names listed by the Comptroller General and GSA. While foreign firms or individuals rarely appear on this list, they are subject to such listing. Exceptions to administrative debarments listed thereon may be