Prime contractors must award contracts to responsible subcontractors. One of the required flowdowns from a prime to a subcontract is FAR 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. This flowdown is required when the solicitation or contract exceeds $35,000 but is not required when purchasing commercially available off the shelf (COTS) items. The purpose of the clause is to protect the government. A contractor that is debarred or suspended is referred to as an excluded contractor.
FAR 52.209-6 allows for an exception for a contractor to subcontract with a debarred contractor if there is a compelling reason. The exception requires the prime contractor’s corporate officer to notify the Government Contracting Officer, in writing, with documentation (subcontractor name, reason for exclusion, compelling reason to use the sub, how the contractor will protect the governments interests) before entering into the subcontract.
How to Stay Compliant With the Government’s Expectations?
Contractors should check sam.gov early in the purchasing process to verify that the subcontractor does not have any exclusions. GSA operates the System for Award Management (SAM) which contains exclusion records. An exclusion record in SAM includes the name and address of entities debarred, suspended, or proposed for debarment. It is also a good practice to include a copy of the sam.gov page verifying there are no exclusions in the purchase order/subcontract files.
So, all I need to do is verify in sam.gov and I am done? No, not quite. FAR 52.209-6(c) has an additional requirement. Even though you check sam.gov for exclusions you still need a certification from the subcontractor. The subcontractor must certify in writing, as of the time of award, that its principals are not debarred, suspended, or proposed for debarment by the Federal Government.
How do I Obtain the Written Certification?
The written disclosure can be obtained in multiple forms such as a separate certification form, an email documenting the certification or can be included on the face of the purchase order. Example wording commonly used on a purchase order is:
By signing/acknowledging this subcontract/PO you are certifying that you and/or principals are not debarred, suspended, or proposed for debarment by the Federal Government.
When do I Need to Get the Written Certification?
Can I obtain the certification after award of the subcontract? No. While the FAR does not identify when the written certification should be obtained, the DCMA CPSR team uses a guide of no more than 10 days prior to award.
What are the Next Steps?
Written policies should address the procedures for verifying a subcontractor has no exclusions in sam.gov and the method the company will use to obtain the written certification before award. Periodic training for buyers will reinforce the importance of verifying information in sam.gov and obtaining the written certification. Documentation in the purchase order file is a must.
Redstone GCI assists contractors throughout the U.S. and internationally with understanding the Government’s expectations when it comes to subcontractors.
Lynne is a Director with Redstone Government Consulting, Inc. providing government contract consulting services to our clients primarily related to Commercial Item Determinations and support, Cost Accounting Standards, DFARS Business System Audits, Proposals, and Incurred Cost. Prior to joining Redstone Government Consulting, Lynne served in several capacities with DCAA and DCMA for over 35 years. Professional Experience Lynne began her career working with DCAA in the Honeywell Resident Office, Clearwater, FL in 1984. Lynne’s experience included various positions which involved conducting or reviewing forward proposals or rate audits, financial capability audits, progress payments, accounting and estimating systems, cost accounting standards, claims and disclosure statement reviews. She is an expert in FAR, DFARS, CAS and testified as an expert witness. Lynne assisted in drafting the commercial item guidance for DCAA Headquarters. Lynne was assigned as a Regional Technical Specialist where she provided guidance to 20 field offices on highly complex or technical issues relative to forward pricing, financial capability or progress payment issues. As an Assistant for Quality, she was involved in reviewing and ensuring audit reports were in compliance with policy and GAGAS as well as made NASBA certified presentations to the staff including but not limited to billing reviews, CAS, unallowable cost and progress payments. To enhance her experience in government contracting, Lynne accepted a position with DCMA in 2015 as part of the newly organized DCMA Cadre of Experts in the Commercial Item Group. This included performing reviews of prime contractor’s assertions and/or commercial item determinations as well as performing price analyses. Lynne was a project lead and later became a lead analyst where she engaged with the buying commands on requests and reviewed price analysis reviews performed by a team of 5 analysts. She also assisted the DCMA CPSR team relative to commercial items and co-instructed the Commercial Item Training presented to DCMA. Education Lynne earned a Bachelor of Science Degree in Accounting from the University of Central Florida. Certifications State of Florida Certified Public Accountant State of Alabama Certified Public Accountant Defense Acquisition Workforce Improvement Act (DAWIA) Level III- Auditing DAWIA Level III – Contracting