Debarment
Debarment is the exclusion of an individual or company from participating in federal contracts or receiving federal benefits. For individuals in the cleared workforce, debarment can result from serious misconduct and effectively ends their ability to work on government contracts.
Quick Facts
| Scope | Exclusion from federal contracting |
| Duration | Typically 3 years, can be longer |
| Impact | Cannot work on any federal contract |
| Authority | Federal Acquisition Regulation (FAR) |
Debarment vs. Clearance Revocation
These are separate but related actions[2]:
| Debarment | Clearance Revocation |
|---|---|
| Bars federal contracting | Bars classified access |
| Applies to all contracts | Applies to cleared work |
| Based on contracting rules | Based on security guidelines |
| Affects any federal work | Affects only cleared work |
You can lose your clearance without being debarred. You can be debarred while still technically holding a clearance (though this is rare).
Causes of Debarment
Individuals may be debarred for[1]:
Criminal conduct:
- Fraud against the government
- Bribery or corruption
- Theft of government property
- Tax evasion
- False statements to government
Contract performance:
- Willful failure to perform
- Violation of contract terms
- History of poor performance
- Failure to pay debts to government
Security violations:
- Unauthorized disclosure of classified information
- Serious security breaches
- Pattern of security violations
The Debarment Process
- Investigation - Agency investigates misconduct
- Notice - Written notice of proposed debarment
- Response opportunity - 30 days to contest
- Decision - Debarring official makes determination
- Appeal - Can appeal to agency head
- SAM entry - Added to System for Award Management
System for Award Management (SAM)
Debarred individuals and companies are listed in SAM:
- Federal database of excluded parties
- Contractors must check before hiring
- Listing prevents participation in contracts
- Public record of debarment
Duration of Debarment
Standard period:
- Generally not more than 3 years
- Can be extended for cause
- Reduction possible for cooperation
Factors affecting duration:
- Severity of conduct
- Willfulness
- Cooperation with investigation
- Remedial measures taken
Impact on Career
Immediate effects:
- Cannot work on federal contracts
- Must leave current contract positions
- May affect state/local contracts that reference federal exclusion
Long-term effects:
- Career in federal contracting effectively ends during debarment
- Debarment history may affect future opportunities
- May need to find work outside government contracting
Related Actions
Debarment may accompany:
- Suspension - Temporary exclusion pending investigation
- Clearance revocation - Loss of security clearance
- Criminal prosecution - Federal charges
- Civil penalties - Fines or damages
Reinstatement
After debarment period:
- Not automatically restored
- May need to demonstrate rehabilitation
- Future contracting at agency discretion
- Debarment history remains visible
For Contractors (Companies)
Companies can also be debarred:
- Affects all employees' ability to work contracts
- Can result from employee misconduct
- Requires new contract eligibility after period
- Facility clearance implications[1]
Related
References
- ^ DoD 5220.22-M: National Industrial Security Program Operating Manual (NISPOM). Department of Defense. Accessed 2026-01-08.
- ^ DoDI 5200.02: DoD Personnel Security Program. Department of Defense. Accessed 2026-01-08.