Debarment
The exclusion of a company or individual from receiving federal contracts or grants due to fraud, criminal conduct, or serious contract performance failures.
How It Works
Debarment is the government's ultimate sanction against bad actors. A debarred company cannot receive new federal contracts, grants, or subcontracts for a specified period (typically 3 years). Causes include fraud, bribery, embezzlement, tax evasion, willful failure to perform, or violation of federal law. The debarment process includes notice, an opportunity to respond, and a decision by a debarring official. Debarred entities are listed in SAM.gov's Exclusions database. Agencies must check this database before making any award. Debarment can also extend to affiliates and subcontractors of the debarred entity.
Related Terms
- Inspector General (IG) — An independent official within each federal agency who investigates fraud, waste, abuse, and mismanagement — reporting to both the agency head and Congress.
- SAM.gov (System for Award Management) — The federal government's central registration database for entities doing business with the government — required for receiving contracts, grants, or other awards.
- Federal Contract — A legally binding agreement between the U.S. government and a private company to provide goods or services — from fighter jets to IT consulting.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.