Question

Define Suspension and then define Debarment. Compare and contrast Suspension and Debarment, describe their purpose, ehen each may be used and the impact on the contractor.

Answer 1

Define Suspension and then define Debarment. Compare and contrast Suspension and Debarment, describe their purpose, when each may be used, and the impact on the contractor.

Both suspension and debarment are used by government agencies involved in procuring goods and services in preventing, forbidding, or limiting, the involvement of a private entity in such procurement activities with the government. The government may issue suspension and debarment in order to prevent fraud, waste, and abuse. Even though the two are used for similar purposes, there are still differences between their usages. Suspensions are used to solve immediate situations and are only temporary measures with its effect limited only to 12 months. Debarment, on the other hand, could take effect up to three years. Furthermore, suspensions are filed when contractors are accused of a fraud, embezzlement, bribery, theft, falsification, tax evasion, etc. while debarments are issued when contractors are convicted of committing such offenses. If a contractor receives suspension or debarment, the contractor will not be eligible to conduct business with the government for a specific amount of time while it would also be hard to renew or create new contracts in relation with the government. Furthermore, if a contractor is suspended or debarred, its transactions to other entities that have businesses with the government will be examined even though the suspended or debarred contractor is not the one conducting business with the government.