Don't forget to inspect your subcontractors
The federal government is cracking down on the use of disbarred and suspended contractors on their projects. A new law will now restrict subcontractors from using these contractors, further down the chain.
In the past, the federal government merely restricted first-tier contractors. The new rules will prevent contractors at any level from contracting with a contractors who has been “debarred, suspended, or proposed for debarment.”
The new law is registered under 48 CFR 9:405-2 and was issued as part of the new Federal Register regulations going into effect on December 13, 2010.
The law does have some caveats. First, it applies only to contracts in excess of $30,000.00. Secondly, a contractor may proceed with an objectionable contract, but only with a “compelling reason” and a notification, in writing, to the contracting officer on the project.
Check out this new regulation here. But, contractors at any level in a federal project should be wary of the new rule. You may consider running a check on each and every contractor you do business with by following these steps (provided by Mike Purdy).
