48 CFR §509.405-1
Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
- (a)When a contractor appears as a current exclusion in the System for Award Management (SAM), consider terminating a contract under any of the following circumstances:
- (1)Any circumstances giving rise to the debarment or suspension also constitute a default in the contractor's performance of the contract.
- (2)The contractor presents a significant risk to the Government in completing the contract.
- (3)The conduct that provides the cause of the suspension, proposed debarment, or debarment involved a GSA contract.
- (b)Before terminating a contract when a contractor appears as a current exclusion in the SAM, consider the following factors:
- (1)Seriousness of the cause for debarment or suspension.
- (2)Extent of contract performance.
- (3)Potential costs of termination and reprocurement.
- (4)Need for or urgency of the requirement, contract coverage, and the impact of delay for reprocurement.
- (5)Availability of other safeguards to protect the Government's interest until completion of the contract.
- (6)Availability of alternate competitive sources to meet the requirement (e.g., other multiple award contracts, readily available commercial products and commercial services.)
- (c)The responsibilities of the agency head under FAR 9.405-1 are delegated to the Senior Procurement Executive.