Checking for Contractor Debarment

Prior to a public agency awarding a contract, especially a public works construction contract, the law requires that the agency verify that the contractor is not debarred from doing business with the government based on violating various laws.

If the project is funded in whole or in part with federal funds, public agencies are normally required under the terms of the funding agreement to verify that the contractor has not been debarred under any federal law or regulation. The federal government’s General Services Administration maintains a database entitled Excluded Parties List System (http://www.epls.gov/). Public agencies should check this website to determine if the contractor appears on the list or not. If they do not appear on the list, print a copy of the website demonstrating that they are not debarred or suspended from performing work on a federally funded contract. This documentation will be important to have on hand when the project is audited by either state or federal auditors. Checking to ensure that a public agency has checked the debarment status of a firm is a standard audit item.

If the project has no federal fund involved, the Washington State Department of Labor and Industries maintains a website of contractors who are debarred for violating prevailing wage regulations (chapter 39.12 RCW). Unlike the federal list which includes many more names and is searchable, the State list is not searchable and is a much smaller list that you can scan to see if the contractor is on it. Click here for the State's list of debarred contractors. Again, it’s a good idea to print a copy of the list for documentation to demonstrate that you have verified this. Under RCW 39.04.350, it is a requirement that public agencies check this list prior to awarding a public works contract. It’s one of a half-dozen mandatory bidder responsibility criteria that must be checked and verified by the public agency prior to award of a public works contract.

In the event the contractor you are intending to award to appears on either the federal or state debarment lists, you are prohibited from awarding the contract to them. It’s a good idea to provide them with written notice of your intent to award to another firm. This gives the contractor time to allow it to have the record corrected, if in fact they are somehow listed in error, or if another company with a similar name is one the list instead of the firm you intend to award to.