Executive Order 12549
[3 CFR 1986 Comp., p. 189]
Debarment and Suspension
By the authority vested in me as President by the Constitution
and laws of the United States of America, and in order to curb
fraud, waste, and abuse in Federal programs, increase agency accountability,
and ensure consistency among agency regulations concerning debarment
and suspension of participants in Federal programs, it is hereby
ordered that:
Section 1.(a) To the extent permitted by law and subject
to the limitations in Section 1(c), Executive departments and
agencies shall participate in a system for debarment and suspension
from
programs and activities involving Federal financial and nonfinancial
assistance and benefits. Debarment or suspension of a participant
in a program by one agency shall have governmentwide effect.
(b) Activities covered by this Order include but are not limited
to: grants, cooperative agreements, contracts of assistance, loans,
and loan guarantees.
(c) This Order does not cover procurement programs and activities,
direct Federal statutory entitlements or mandatory awards, direct
awards to foreign governments or public international organizations,
benefits to an individual as a personal entitlement, or Federal
employment.
Sec. 2. To the extent permitted by law, Executive departments
and agencies shall:
(a) Follow governmentwide criteria and governmentwide minimum
due process procedures when they act to debar or suspend participants
in affected programs.
(b) Send to the agency designated pursuant to Section 5 identifying
information concerning debarred and suspended participants in
affected programs, participants who have agreed to exclusion from
participation. and participants declared ineligible under applicable
law, including Executive Orders. This information shah be included
in the list to be maintained pursuant to Section 5.
(c) Not allow a party to participate in any affected program if
any Executive department or agency has debarred, suspended, or
otherwise excluded (to the extent specified in the exclusion agreement)
that party from participation in an affected program. An agency
may grant an exception permitting a debarred. suspended. or excluded
party to participate in a particular transaction, upon a written
determination by the agency head or authorized designee stating
the reason(s) for deviating from this Presidential policy. However,
I intend that exceptions to this policy should be granted only
infrequently.
Sec. 3. Executive departments and agencies shall issue
regulations governing their implementation of this Order that
shall be consistent with the guidelines issued under Section 6.
Proposed regulations shall be submitted to the Office of Management
and Budget for review within four months of the date of the guidelines
issued under Section 6. The Director of the Office of Management
and Budget may return for reconsideration proposed regulations
that the Director believes are inconsistent with the guidelines.
Final regulations shall be published within twelve months of the
date of the guidelines.
Sec. 4. There is hereby constituted the Interagency Committee
on Debarment and Suspension, which shall monitor implementation
of this Order. The Committee shall consist of representatives
of agencies designated by the Director of the Office of Management
and Budget.
Sec. 5. The Director of the Office of Management and Budget
shall designate a Federal agency to perform the following functions:
maintain a current list of all individuals and organizations excluded
from program participation under this Order, periodically distribute
the list to Federal agencies, and study the feasibility of automating
the list; coordinate with the lead agency responsible for governmentwide
debarment and suspension of contractors; chair the Interagency
Committee established by Section 4; and report periodically to
the Director on implementation of this Order, with the first report
due within two years of the date of the Order.
Sec. 6. The Director of the Office of Management and Budget
is authorized to issue guidelines to Executive departments and
agencies that govern which programs and activities are covered
by this Order, prescribe governmentwide criteria and governmenwide
minimum due process procedures, and set forth other related details
for the effective administration of the guidelines.
Sec. 7. The Director of the Office of Management and Budget
shall report the President within three years of the date of this
Order on Federal agency compliance with the Order, including the
number
of exceptions made under Section 2(c), and shall make such recommendations
as are appropriate further to curb fraud. waste, end abuse.
THE WHITE HOUSE, February 18, 1986.