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Supplying Principles and Practices > USPS Supplying Practices General Practices > Supplier Debarment, Suspension, and Ineligibility
The Contracting Officer, the Office of Inspector General (OIG), the Inspection
Service, General Counsel, or a representative from any other affected area of
the Postal Service that becomes aware of circumstances that may serve as
the basis for a debarment or suspension may make the request to the
Debarring Official (Vice President, Supply Management [VP, SM]) through
appropriate channels (e.g., Contracting Officer, Manager, General Counsel,
Debarment and Suspension Coordinator). However, circumstances that
involve possible criminal or fraudulent activities must first be reported to the
OIG or Inspection Service, as appropriate, for investigative consideration.
A debarment or suspension request should be in the form of a memorandum
or e-mail addressed to the VP, SM. The request must identify the party or
parties proposed to be debarred or suspended, including specifically, where
applicable, the identities of corporate officers, agents, affiliates, or others
proposed to be included in the requested action; it must clearly identify and
explain the cause(s) for debarment or suspension; and it must be
accompanied by the following information, as applicable:
• Legal name, taxpayer identification number (TIN) and/or social
security number (SSN), and address of the party(ies).
• An explanation why debarment or suspension specifically is in the
Postal Service's best interest is required. Any mitigating factors
(see 39 CFR 601-113(f)) known to the requester should be
documented in the request.
• Where Postal Service debarment is to be premised on debarment
by another Executive agency or department, an explanation in
reasonable detail why debarment, rather than treatment pursuant
to 39 CFR 601-113(d)(3), Treatment of Suppliers on Postal
Service or GSA Lists, is appropriate.
• All relevant supporting documentation, such as evidence of
indictment or criminal conviction, evidence of willful failure to
perform a postal contract or of repeated instances of failure to
perform or of unsatisfactory performance of a postal contract, or
of other indicated grounds for debarment or suspension.
• If debarment or suspension of a corporation, limited liability
company, partnership, or the like is proposed based on the
conduct of an individual associated with the firm, evidence that
the conduct was accomplished within the course of his or her
official duty or was effected by him or her with the knowledge or
approval of the firm.
• An estimate of any damages sustained by the Postal Service as a
result of the action(s) of the party(ies) proposed for debarment or
suspension, including an explanation of the method used in
making the estimate.
The Debarment and Suspension Coordinator in Supply Management
Infrastructure, with assistance from General Counsel, will review the
debarment or suspension request for thoroughness, accuracy, and
adherence to the requirements of the CFR before forwarding it to the VP, SM
with a recommended course of action.
If the VP, SM determines that debarment or suspension is not warranted
based on the information contained in the debarment/suspension request and
the advice of General Counsel, the requester will be notified by the
Debarment and Suspension Coordinator and will close the file on the request.
The original debarment/suspension request will be maintained by Supply
Management Infrastructure for a period of six (6) years.
If the VP, SM determines that debarment or suspension is warranted, the
Debarment and Suspension Coordinator, with the assistance of General
Counsel, will prepare written notice to the party advising it of the proposed
debarment or suspension. The Supplier will be provided thirty (30) days to
respond to the proposed debarment or suspension. If there is no response or
the Supplier's response is not sufficient and the VP, SM still determines that
debarment or suspension is warranted, the Debarment and Suspension
Coordinator will notify the GSA via its Excluded Parties List System (EPLS),
the Inspection Service, and the Postal Service Office of Inspector General of
the debarment or suspension and post the debarment or suspension on the
Postal Service internal web page, available at http://blue.usps.gov/
purchase/infrastructure/smi_pa_debar.htm.
When a Supplier submits, in person, in writing, or through a representative,
information and argument in opposition to the proposed debarment or
suspension, the Debarment and Suspension Coordinator will assist General
Counsel and the VP, SM with the request (e.g., coordinating and facilitating
in-person meetings, drafting or finalizing documents, etc.).
A party served with a notice of proposed debarment or suspension is
provided an opportunity to submit, in person, in writing, or through a
representative, information and argument in opposition to the proposed
debarment.
The Supplier has the burden of demonstrating, to the satisfaction of the
Debarring Official, its present capability and that debarment is not necessary.
Suppliers debarred, suspended, or proposed for debarment are excluded
from receiving contracts, and the Postal Service shall not solicit offers from,
award contracts to, or consent to subcontracts with these Suppliers, unless
the VP, SM (via documentation by the Contracting Officer) determines that
there is a compelling reason for such action. Suppliers debarred, suspended,
or proposed for debarment are also excluded from conducting business with
the Postal Service as agents, subcontractors, or representatives of other
Suppliers.
Proposals, quotations, or offers received from any listed Supplier shall not be
evaluated for award unless the VP, SM (via documentation by the Contracting
Officer) determines, in writing, that there is a compelling reason to do so. If
the period of ineligibility expires or is terminated before award, the
Contracting Officer may, but is not required to, consider such proposals,
quotations, or offers.
Contracting Officers are responsible for reviewing the GSA Excluded Parties
List System and the Postal Service List to ensure that no award is made to a
listed Supplier unless acceptable in accordance with the GSA Summary
Code (see http://blue.usps.gov/purchase/_doc/GSAcodesum.doc) or there is
a compelling reason for such action (as addressed above). It is advisable for
Contracting Officers to again review the lists immediately before award to
ensure that no award is made to a listed Supplier.
Notwithstanding the debarment, suspension, or proposed debarment of a
Supplier, the Postal Service may continue contracts or subcontracts in
existence at the time the Supplier was debarred, suspended, or proposed for
debarment unless the VP, SM directs otherwise.
When the circumstances giving rise to the debarment or suspension also
constitute a default in the Supplier's performance of the contract, termination
for default under the contract's "default" clause is appropriate. A decision as
to the type of termination action, if any, to be taken should be made only after
review by the Postal Service Contracting Officer and technical personnel and
by Legal Counsel to ensure the propriety of the proposed action.
If the Supplier presents a significant risk to the Postal Service in completing
the current contract, the Contracting Officer shall determine whether
termination for convenience or cancellation under appropriate contract
provisions is in the Postal Service's best interest. In making this
determination, the Contracting Officer shall consult with Legal Counsel and
should consider the following factors:
• Seriousness of the cause for debarment or suspension.
• Extent of contract performance.
• Potential costs of termination and repurchase.
• Urgency of the requirement and the impact of the delay of
repurchase.
• Availability of other safeguards to protect the Postal Service's
interest until completion of the contract.
For Suppliers or subcontractors that are debarred, suspended, or proposed
for debarment, unless the VP, SM makes a written determination of the
compelling reasons for doing so, and with exception for service changes
under mail transportation contracts, Contracting Officers may not place
orders exceeding the guaranteed minimum under indefinite-quantity
contracts; place orders under optional use Federal Supply Schedule
contracts, blanket purchase agreements, or basic ordering agreements; or
add new work, exercise options, or otherwise extend the duration of current
contracts or orders.
Conduct Supplier Capability (Technical and Financial) Analysis topic,
Evaluate Proposals task, Process Step 2: Evaluate Sources
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