Debarment and Suspension Initiative
The Environmental Protection Agency (EPA) has stringent regulations and procedures in place to ensure that individuals and entities involved in environmental noncompliance, contract fraud, and other misconduct are barred from participating in government-funded activities. These regulations and procedures are not exclusive to the EPA, but form part of a broader government-wide system known as suspension and debarment.
This system is governed by a combination of statutory mandates, executive orders, and federal regulations. Executive Order 12549, for instance, establishes a government-wide system for suspension and debarment, excluding individuals or businesses who are suspended or debarred from participating in federally funded activities, such as grants, contracts, loans, and loan guarantees.
Before receiving federal contracts or subcontracts, entities must be verified as not suspended or debarred. For prime contractors, this verification is conducted via the governmentwide System for Award Management (SAM) database. For subcontractors, verification can be done through SAM, certification from the subcontractor, or contract clauses.
Specific to environmental statutes, Sections 306 of the Clean Air Act (CAA) and 508 of the Clean Water Act (CWA), as implemented by Executive Order 11738 (1973), prohibit Federal assistance agreements at facilities disqualified due to criminal convictions or a serious pattern of civil violations related to environmental laws. In such cases, statutory debarment occurs automatically by law following criminal conviction under these sections.
Contractors and subcontractors with contracts equal to or exceeding $25,000 are required to submit certifications confirming they are not debarred, suspended, proposed for debarment, or otherwise excluded from federal contracting.
The EPA also enforces criminal penalties for severe environmental misconduct, such as tampering with monitoring devices, knowing or negligent endangerment, which can involve imprisonment and fines. These criminal enforcement provisions underpin administrative suspension and debarment actions.
The administrative process for suspension and debarment aligns with federal uniform administrative requirements, which detail procedural safeguards and documentation standards that the EPA and other agencies must follow when imposing such sanctions.
Suspension and debarment actions are designed to protect the government from doing business with individuals/companies/recipients who pose a business risk. These actions prevent participation in government contracts, subcontracts, loans, grants, and other assistance programs. The purpose of these actions is to ensure compliance with environmental regulations and prevent fraud, abuse, and misconduct in government contracts and programs.
Suspension is a temporary action which may last up to one year, while debarment can be based on a wider range of causes and lasts until the Debarring Official certifies that the condition giving rise to the conviction has been corrected.
For more information about the Suspension and Debarment Process, Clean Water Act and Clean Air Act Ineligibilities, how to contest a notice, and how to seek reinstatement, visit SAM.gov. The EPA has the authority to suspend and debar individuals and entities, and the Interagency Suspension and Debarment Committee is involved in the suspension and debarment process.
In summary, the EPA's suspension and debarment procedures are mandated under Executive Order 12549 and relevant environmental statutes (CAA Section 306, CWA Section 508). They require verification of non-suspension/non-debarment status via SAM before contract awards, mandate certifications from contractors and subcontractors for contracts over $25,000, statutorily bar entities convicted of serious environmental violations until corrective action is certified, are supported by criminal enforcement authorities to address severe misconduct, follow uniform federal regulations to ensure due process in suspensions and debarments, and prevent participation in government contracts, subcontracts, loans, grants, and other assistance programs.
- Entity that is debarred or suspended cannot participate in projects funded by the government, such as contracts, loans, or grants, which also includes projects related to the management of air and water resources, as well as finance-related business endeavors.
- In accordance with the Clean Air Act and Clean Water Act, federal assistance agreements are disqualified for facilities with criminal convictions or a serious pattern of civil violations related to environmental laws, thus resulting in statutory debarment and preventing participation in environmental business activities.
