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New National Term on Suspension and Debarment
Following is the new National term on Suspension and Debarment. This condition applies to all recipients and is effective immediately.
Recipient shall fully comply with Subpart C of 40 CFR Part 32, entitled "Responsibilities of Participants Regarding Transactions." Recipient is responsible for ensuring that any lower tier covered transaction, as described in Subpart B of 40 CFR Part 32, entitled "Covered Transactions," includes a term or condition requiring compliance with Subpart C. Recipient is responsible for further requiring the inclusion of a similar term or condition in any subsequent lower tier covered transactions. Recipient acknowledges that failing to disclose the information required under 40 CFR 32.335 may result in the delay or negation of this assistance agreement, or pursuance of legal remedies, including suspension and debarment.
Recipient may access the Excluded Parties List System at http://epls.arnet.gov. This term and condition supersedes EPA Form 5700-49, "Certification Regarding Debarment, Suspension, and Other Responsibility Matters."
Following are related steps which grants personnel should observe when awarding EPA assistance agreements.
- Familiarize yourself with Subpart D of 40 CFR Part 32, entitled "Responsibilities
of EPA Officials Regarding Transactions." You must comply with
this regulation. See below for full text of Subpart D.
- Check the Excluded Parties List System before awarding initial
and supplemental funding packages. See Subpart D to determine the
manner in which you must handle excluded or disqualified person(s).
- Review the information that participants* provide in response
to 40 CFR 32.335, which requires participants to provide certain
information before entering into a covered transaction with EPA.
- Attach the Suspension and Debarment National term and condition
to all new, supplemental, and incremental funding packages. See IGMS
Administrative Database, under National Conditions.
- Discontinue the use of EPA Form 5700-49, "Certification Regarding
Debarment, Suspension, and Other Responsibility Matters."
- Remove language from any general terms and conditions that require
the recipient to use EPA Form 5700-49.
- Cease using individual terms and conditions which specifically require the use of EPA Form 5700-49.
* Pursuant to 40 CFR 32.980, "Participant" means any person who submits a proposal for or who enters into a covered transaction, including an agent or representative of a participant.
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Title 40 CFR Part 32, Subpart D
"Responsibilities of EPA Officials Regarding Transactions"
§§ 32.400 May I enter into a transaction with an excluded
or disqualified person?
(a) You as an agency official may not enter into a covered transaction with an excluded person unless you obtain an exception under §§ 32.120.
(b) You may not enter into any transaction with a person who is disqualified from that transaction, unless you obtain a waiver or exception under the statute, Executive order, or regulation that is the basis for the person's disqualification.
§§ 32.405 May I enter into a covered transaction with a participant if a principal of the transaction is excluded?
As an agency official, you may not enter into a covered transaction with a participant if you know that a principal of the transaction is excluded, unless you obtain an exception under §§ 32.120.
§§ 32.410 May I approve a participant's use of the services of an excluded person?
After entering into a covered transaction with a participant, you as an agency official may not approve a participant's use of an excluded person as a principal under that transaction, unless you obtain an exception under §§ 32.120.
§§ 32.415 What must I do if a Federal agency excludes the participant or a principal after I enter into a covered transaction?
(a) You as an agency official may continue covered transactions with an excluded person, or under which an excluded person is a principal, if the transactions were in existence when the person was excluded. You are not required to continue the transactions, however, and you may consider termination. You should make a decision about whether to terminate and the type of termination action, if any, only after a thorough review to ensure that the action is proper.
(b) You may not renew or extend covered transactions (other than no-cost time extensions) with any excluded person, or under which an excluded person is a principal, unless you obtain an exception under §§ 32.120.
§§ 32.420 May I approve a transaction with an excluded or disqualified person at a lower tier?
If a transaction at a lower tier is subject to your approval, you as an agency official may not approve -
(a) A covered transaction with a person who is currently excluded, unless you obtain an exception under §§ 32.120; or
(b) A transaction with a person who is disqualified from that transaction, unless you obtain a waiver or exception under the statute, Executive order, or regulation that is the basis for the person's disqualification.
§§ 32.425 When do I check to see if a person is excluded or disqualified?
As an agency official, you must check to see if a person is excluded or disqualified before you -
(a) Enter into a primary tier covered transaction;
(b) Approve a principal in a primary tier covered transaction;
(c) Approve a lower tier participant if agency approval of the lower tier participant is required; or
(d) Approve a principal in connection with a lower tier transaction if agency approval of the principal is required.
§§ 32.430 How do I check to see if a person is excluded or disqualified?
You check to see if a person is excluded or disqualified in two ways:
(a) You as an agency official must check the EPLS when you take any action listed in §§ 32.425.
(b) You must review information that a participant gives you, as required by §§ 32.335, about its status or the status of the principals of a transaction.
§§ 32.435 What must I require of a primary tier participant?
You as an agency official must require each participant in a primary tier covered transaction to -
(a) Comply with subpart C of this part as a condition of participation in the transaction; and
(b) Communicate the requirement to comply with Subpart C of this part to persons at the next lower tier with whom the primary tier participant enters into covered transactions.
§§ 32.440 What method do I use to communicate those requirements to participants?
To communicate the requirements to participants, you must include a term or condition in the transaction requiring the participant's compliance with subpart C of this part, and requiring them to include a similar term or condition in lower tier covered transactions.
§§ 32.445 What action may I take if a primary tier participant knowingly does business with an excluded or disqualified person?
If a participant knowingly does business with an excluded or disqualified person, you as an agency official may refer the matter for suspension and debarment consideration. You may also disallow costs, annul or terminate the transaction, issue a stop work order, or take any other appropriate remedy.
§§ 32.450 What action may I take if a primary tier participant fails to disclose the information required under §§ 32.335?
If you as an agency official determine that a participant failed to disclose information, as required by §§ 32.335, at the time it entered into a covered transaction with you, you may -
(a) Terminate the transaction for material failure to comply with the terms and conditions of the transaction; or
(b) Pursue any other available remedies, including suspension and debarment.
§§ 32.455 What may I do if a lower tier participant fails to disclose the information required under §§ 32.355 to the next higher tier?
If you as an agency official determine that a lower tier participant failed to disclose information, as required by §§ 32.355, at the time it entered into a covered transaction with a participant at the next higher tier, you may pursue any remedies available to you, including the initiation of a suspension or debarment action.