1. RECOVERY OVERSIGHT OFFICE OFFICE OF INSPECTOR GENERAL U.S. DEPARTMENT OF THE INTERIOR

2. RECOVERY OVERSIGHT OFFICE Government contracts and discretionary assistance are awarded only to “presently responsible” parties.

3. RECOVERY OVERSIGHT OFFICE Suspension – agency official temporarily excludes a contractor from government contracting and government-approved subcontracting, or temporarily excludes a person from participating in covered transactions Debarment – agency official excludes a contractor from government contracting and government- approved subcontracting for a specific time, or excludes a person from participating in covered transactions for a specific time

4. RECOVERY OVERSIGHT OFFICE Administrative remedy – decision about significant business risk of a person or organization as a potential contractor or participant By inherent authority– necessarily incidental to effective administration of a statutory scheme Gonzalez v. Freeman, 334 F.2d 570 (D.C. Cir. 1964) By express authority – derived from a statute or an executive order

5. RECOVERY OVERSIGHT OFFICE The remedy is consistent with and supports a basic objective of the Recovery Act which is prevention, as well as detection, of poor performance, fraud, waste, and abuse

6. RECOVERY OVERSIGHT OFFICE as punishment; to coerce acceptance of civil or criminal settlements; or to embarrass, harass or get even

7. RECOVERY OVERSIGHT OFFICE

8. Three key rule differences:  FAR Notice of Proposed Debarment (NPD) has immediate effect but nonprocurement NPD does not  Award ineligibility under FAR limited to prime contract and approved subcontracts  Lower tiers reached under nonprocurement rule

9. RECOVERY OVERSIGHT OFFICE Reciprocal effect of action under rules P.L. 103-355, Section 2455 and E.O. 12689 Prospective effect – new awards only Awarding officials must separately decide proper action on existing awards

10. RECOVERY OVERSIGHT OFFICE For contractors (individuals or companies) proposed for debarment, suspended, or debarred - excluded from receiving new contracts and federally approved subcontracts For participants (individuals or organizations) – no new awards

11. RECOVERY OVERSIGHT OFFICE Ineligible persons cannot be agents, representatives, or principals, including key employees for award performance purposes Names entered into the web-based Excluded Parties List System: http://www.epls.gov Awarding officials must check before making new awards

12. RECOVERY OVERSIGHT OFFICE

13. Offense-based causes from a conviction or civil judgment for:  Commission of fraud or criminal offense in connection with obtaining, attempting to obtain, or performing a public contract, subcontract, or nonprocurement award  Violation of Federal or State antitrust statues relating to offer submissions

14. RECOVERY OVERSIGHT OFFICE  Embezzlement, theft, forgery, bribery, records falsification and destruction, false statements, Federal criminal tax violation and tax evasion  Stolen property  Intentional violation of “Made in America” laws

15. RECOVERY OVERSIGHT OFFICE  Any other offense “indicating a lack of business integrity or honesty that seriously and directly affects…present responsibility…” Conviction or civil judgment is cause for debarment (including deferred prosecution)

16. RECOVERY OVERSIGHT OFFICE Fact-based causes:  Serious violation of terms of government award such as willful failure to perform, or history of failure to perform on one or more award, Drug Free workplace laws, Buy America, and certain tax delinquencies

17. RECOVERY OVERSIGHT OFFICE  DHS Secretary or AG finding of Immigration and Nationality Act (INA) employment provisions noncompliance (not reviewable in debarment proceedings)  Any other cause of so compelling and serious nature that it affects present responsibility

18. RECOVERY OVERSIGHT OFFICE Fact-based cause (other than INA): by “preponderance of evidence” Government has burden of proof SDO must conduct fact-finding on facts material to action and “genuinely in dispute”

19. RECOVERY OVERSIGHT OFFICE Notice; Opportunity to be heard; Cross-examine witnesses present in fact-finding; and Written decision based on an administrative record

20. RECOVERY OVERSIGHT OFFICE Standards of conduct Voluntary disclosure Internal investigation Full cooperation Paid costs/ restitution Disciplined employee Agreed to implement remedial actions Ethics training Adequate time to eliminate causes Management recognition of problem

21. RECOVERY OVERSIGHT OFFICE Action to protect integrity of contracts and assistance award process at earliest stage prior to completion of record on whether misconduct exists

22. RECOVERY OVERSIGHT OFFICE Two Components:  Adequate evidence (probable cause) that upon investigation/legal proceedings cause for debarment will exist Met by either criminal charging document or facts  Necessity for immediate action to protect program award integrity interests pending completion of legal proceedings

23. RECOVERY OVERSIGHT OFFICE AIU gathers information on possible S&D candidates DOI assistance programs can also be a source of information Reliable record-keeping of key documents critical

24. RECOVERY OVERSIGHT OFFICE AIU coordinates lead agency through the Interagency Suspension and Debarment Committee AIU prepares Action Referral Memo (ARM) and attachments and refers to SDO for notice issuance action AIU tracks action - may provide further support, as appropriate

25. RECOVERY OVERSIGHT OFFICE Offense-based actions:  Final indictment, information, or other charging document  Plea agreement, and, if separate, supporting factual resume  Conviction order Fact-based actions:  If contract or grant involved, copies of basic documents and evidence

26. RECOVERY OVERSIGHT OFFICE Special thanks to the Environmental Protection Agency (EPA)