The SUSPEND Act: Fixing What Isn’t Broken In The Federal Government’s Suspension And Debarment System

The suspension and debarment system has faced increased scrutiny from the private and public sectors alike, which generally argue that the system is broken because the respective authorities are not following, or are inconsistently applying, the rules. In response to this criticism, Congress historically has reacted with a heavy hand, i.e. by proposing mandatory suspension or debarment for certain offenses. One of the more recently proposed examples of such Congressional action – House Oversight Chairman Rep. Darrell Issa's Stop Unworthy Spending Act, better known as the SUSPEND Act – departs from this trend of mandating suspension and debarment in limited, specific circumstances, but still fails to address the system's perceived weaknesses.

On June 12, 2013, the House Committee on Oversight and Government Reform conducted a hearing on the Act, and on July 12, 2013, Committee staff members participated in a panel discussion on the Act. Although the Act remains a draft bill that has yet to be introduced in Congress, it raises concerns with respect to the system's efficiency and productivity as the Act appears to be taking what has been, and arguably should be, a more flexible system and transforming it into a more rigid, quasi-judicial process overseen by a formal decision-making body.

Overview

On February 7, 2013, Rep. Issa released a discussion draft of the SUSPEND Act, as a means to protect taxpayers from "fraudsters, criminals, or tax cheats receiving taxpayer money through grants or contracts." To achieve this goal, the SUSPEND Act proposes consolidating, and thereby terminating, more than 41 civilian agency suspension and debarment offices and functions into one centralized board, the Board of Civilian Suspension and Debarment, which would be located within the General Services Administration (GSA). Department of Defense (DoD) agencies are exempt from this consolidation which, according to the Act, would improve the suspension and debarment system through (1) the transparent and efficient handling of cases; (2) the effective oversight of the database of federal awardee information; (3) the consistent and fair treatment of all persons and entities subject to suspension or debarment proceedings; and (4) active engagement with contracting officers.

The Board itself would be headed by a Chair (appointed by the GSA), and would review actions in a quasi-judicial capacity. Per the proposed draft, the Board also would be responsible for...