Executive Order 12549 of February 18, 1986 — Debarment and Suspension

Summary

Executive Order 12549, signed February 18, 1986 and printed in the Federal Register of February 21, 1986 (Vol. 51, No. 35, page 6370), sets up a government-wide system for debarment and suspension from federal financial and nonfinancial assistance and benefits. A debarment or suspension by one agency has government-wide effect, and covered activities include grants, cooperative agreements, contracts of assistance, loans and loan guarantees; procurement, direct entitlements and federal employment are excluded. Agencies must report excluded participants to an agency designated by the Director of the Office of Management and Budget, which keeps a current list, and may grant exceptions only by written determination of the agency head, which the order says should be infrequent. Section 4 creates the Interagency Committee on Debarment and Suspension to monitor implementation.

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Full text

6370

Federal Register
Presidential Documents
Vol. 51, No, 35

Friday February 21, 1908

Title 3— Executive Order 12549 of February 18, 1986

T h e P re sid e n t D eb arm en t an d S u sp en sio n

By the authority vested in me as President by the Constitution and laws of the
United States of America, and in order to curb fraud, waste, and abuse in
Federal programs, increase agency accountability, and ensure consistency
among agency regulations concerning debarment and suspension of partici
pants in Federal programs, it is hereby ordered that:
Section 1. (a) To the extent permitted by law and subject to the limitations in
Section 1(c), Executive departments and agencies shall participate in a
system for debarment and suspension from programs and activities involving
Federal financial and nonfinancial assistance and benefits. Debarment or
suspension of a participant in a program by one agency shall have govern
ment-wide effect.
(b) Activities covered by this Order include but are not limited to: grants,
cooperative agreements, contracts of assistance, loans, and loan guarantees.
(c) This Order does not cover procurement programs and activities, direct
Federal statutory entitlements or mandatory awards, direct awards to foreign
governments or public international organizations, benefits to an individual as
a personal entitlement, or Federal employment.
Sec. 2. To the extent permitted by law, Executive departments and agencies
shall:
(a) Follow government-wide criteria and government-wide minimum due proc
ess procedures when they act to debar or suspend participants in affected
programs.
(b) Send to the agency designated pursuant to Section 5 identifying informa
tion concerning debarred and suspended participants in affected programs,
participants who have agreed to exclusion from participation, and participants
declared ineligible under applicable law, including Executive Orders. This
information shall be included in the list to be maintained pursuant to
Section 5.
(c) Not allow a party to participate in any affected program if any Executive
department or agency has debarred, suspended, or otherwise excluded (to the
extent specified in the exclusion agreement) that party from participation in
an affected program. An agency may grant an exception permitting a de
barred, suspended, or excluded party to participate in a particular transaction
upon a written determination by the agency head or authorized designee
stating the reason(s) for deviating from this Presidential policy. However, I
intend that exceptions to this policy should be granted only infrequently.
Sec. 3. Executive departments and agencies shall issue regulations governing
their implementation of this Order that shall be consistent with the guidelines
issued under Section 6. Proposed regulations shall be submitted to the Office
of Management and Budget for review within four months of the date of the
guidelines issued under Section 6. The Director of the Office of Management
and Budget may return for reconsideration proposed regulations that the
Director believes are inconsistent with the guidelines. Final regulations shall
be published within twelve months of the date of the guidelines.
Sec. 4. There is hereby constituted the Interagency Committee on Debarment
and Suspension, which shall monitor implementation of this Order. The
Federal Register / Vol. 51, No. 35 / Friday, February 21, 1986 / Presidential Documents 6371

Committee shall consist of representatives of agencies designated by the
Director of the Office of Management and Budget.
Sec. 5. The Director of the Office of Management and Budget shall designate a
Federal agency to perform the following functions: maintain a current list of
all individuals and organizations excluded from program participation under
this Order, periodically distribute the list to Federal agencies, and study the
feasibility of automating the list; coordinate with the lead agency responsible
for government-wide debarment and suspension of contractors; chair the
Interagency Committee established by Section 4; and report periodically to the
Director on implementation of this Order, with the first report due within two
years of the date of the Order.
Sec. 6. The Director of the Office of Management and Budget is authorized to
issue guidelines to Executive departments and agencies that govern which
programs and activities are covered by this Order, prescribe government-wide
criteria and government-wide minimum due process procedures, and set forth
other related details for the effective administration of the guidelines.
Sec. 7. The Director of the Office of Management and Budget shall report to
the President within three years of the date of this Order on Federal agency
compliance with the Order, including the number of exceptions made under
Section 2(c), and shall make such recommendations as are appropriate further
to curb fraud, waste, and abuse.

THE WHITE HOUSE,
F eb ru a ry 18, 1986.
[FR Doc. 86-3897
Filed 2-19-86; 10:56 am]
Billing code 3195-01-M

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