Federal agencies are increasingly suspending or disbarring federal contractors who break contracting rules, according to a new report from the Interagency Suspension and Debarment Committee (ISDC).
Last year federal agencies suspended 612 vendors, which was almost 200 more than in 2009. The report also found that federal agencies debarred 1,651 contractors, an increase of 150 from 2009, and proposed that 1,945 companies be debarred, an increase of nearly 1,200 in 2009.
"While the basic federal policies and procedures governing suspension and debarment in procurement and nonprocurement activities remain sound, reports issued in recent years by agency Inspectors General, and others, serve as important reminders of the heightened attention that agencies must continually give to how these processes are managed,” the committee wrote. “Such attention is essential for ensuring that agencies are able to apply these tools whenever necessary to protect taxpayers from bad actors."
The report is contrary to a recent report from the Government Accountability Office (GAO) that said most federal agencies aren’t doing enough to monitor contractor fraud. However, that report only analyzed the disciplinary actions of 10 major federal agencies.
In the ISDC report, the agencies who issued the most debarments included the Army, the Defense Logistics Agency (DLA), the Department of Homeland Security, the Environmental Protection Agency and the Office of Personnel Management (OPM). The agencies that suspended the most contractors in 2010 were the DLA, Army, Air Force and the Department of Housing and Urban Development.
The report reveals not only an increase in suspension and debarments, but an increase in the use of show cause letters and administrative agreements that alert a contractor of a problem that needs to be fixed in a timely manner.
"More agencies are establishing formal suspension and debarment programs, dedicating greater staff resources to handle referrals and manage cases, strengthening policies, providing training, and acting decisively to root out illegal behavior and irresponsible actors," the report stated.
The ISDC has taken steps to improve contractor oversight beyond the report. This includes helping to develop the Federal Awardee Performance and Integrity Information System and working with the General Services Adminstration to improve the Excluded Parties List System (EPLS).
