GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (GSAM)

## Part 509—Contractor Qualifications

### Subpart 509.1—Responsible Prospective Contractors

#### 509.104 Standards.

#### 509.104-3 Application of standards.

Past performance on subcontracting plan goals. You can obtain information to evaluate an offeror’s past performance on subcontracting plan goals from the following sources:

(1) The Small Business Administration

(2) Information on prior contracts from contracting officers and administrative contracting officers.

(3) Offeror’s references.

(4) Past performance information collected under FAR 42.1500.

#### 509.105 Procedures. #### 509.105-1 Obtaining information. (a) From a prospective contractor. In making a determination of responsibility, you may use the GSA Form 527, Contractor’s Qualifications and Financial Information, to obtain information regarding financial capability from a prospective contractor. (b) From Government personnel. Solicit and consider information from all appropriate activities, including legal counsel, quality control, contract management, credit and finance, and the auditor before determining that an offeror is responsible. “Auditor” is either: (1) The Assistant Inspector General for Auditing (Central Office only). (2) The Regional Inspector General for Auditing. (3) Chief, Credit and Finance Section, the Heartland Region (for an evaluation of a prospective contractor’s financial competence and credit).

#### 509.105-2 Determinations and documentation. (a) Provide written notification to a prospective contractor you determine not responsible. Include the basis for the determination. Notification provides the prospective contractor with the opportunity to correct any problem for future solicitations. (b) Due to the potential for de facto debarment, avoid making repeated determinations of nonresponsibility based on the same past performance information. (c) To provide for timely consideration of the need to institute action to debar a contractor, submit a copy of each nonresponsibility determination, other than those based on capacity or financial capability, to the debarring official.

#### 509.106 Preaward surveys. #### 509.106-2 Requests for preaward surveys. Federal Supply Service (FSS). Contracting activities in FSS may use GSA Form 353, Performance Evaluation & Facilities Report, in lieu of SF 1403 through 1406. Complete Section I in accordance with instructions in 553.370-353-I.

### Subpart 509.2—Qualifications Requirements #### 509.206 Acquisitions subject to qualification requirements. #### 509.206-2 Contract clause. Insert 552.209-70, Product Removal from Qualified Products List, in solicitations and contracts containing FAR 52.209-1, Qualification Requirements.

### Subpart 509.3—First Article Testing and Approval

#### 509.302 General.

(a) If FSS requires first article testing and approval, it usually requires that the contractor perform testing and that the first article:

(1) Be produced at the same facility where production quantities will be produced.

(2) Serve as the manufacturing standard.

(b) In FSS, coordinate the need for first article testing and approval with the Quality Assurance Division (FQA). FQA provides the information to complete FAR 52.209-3 or 52.209-4.

#### 509.306 Solicitation requirements. (a) The clauses at FAR 52.209-3 and 52.209-4 do not cover all the solicitation requirements described in FAR 9.306. If a solicitation contains a testing and approval requirement, you must address the requirements in FAR 9.306 paragraphs (d), (f), (g), (h), (i), and (j). For FSS, the clauses prescribed in 509.308 address the requirement in FAR 9.306(h). (b) In FSS solicitations that contain FAR 52.209-3, First Article Approval—Contractor Testing, or FAR 52.209-4, First Article Approval-Government Testing, insert 552.209-71, Waiver of First Article Testing and Approval Requirement.

#### 509.308 Contract clauses. #### 509.308-1 Testing performed by the contractor. In FSS solicitations and contracts that will require the contractor to perform testing, insert 552.209-72, Supplemental Requirements for First Article Approval—Contractor Testing, and FAR 52.209-3, Alternate I.

#### 509.308-2 Testing performed by the Government. In FSS solicitations and contracts that will have the Government responsible for first article testing, insert 552.209-73, Supplemental Requirements for First Article Approval—Government Testing, and FAR 52.209-4, Alternate I.

### Subpart 509.4—Debarment, Suspension, and Ineligibility #### 509.401 Applicability. This subpart applies to all the following: (a) Acquisitions of personal property, nonpersonal services (including construction), space in buildings, transportation services (Federal Property Management Regulation (FPMR) Subpart 101-40.4). (b) The purchase, sale, and disposal of real property. (c) Contracts for disposal of personal property (FPMR Subpart 101-45.6). (d) Covered transactions as defined at the General Services Administration Property Management Regulations (GSPMR) 105-68.110(a).

#### 509.403 Definitions. “Fact-finding official,” means the Chairman of the Debarment and Suspension Board within the GSA Board of Contract Appeals or a designee. “Notice” means a letter sent by certified mail, return receipt requested, to the last known address of a party, its counsel, or agent for service of process. In the case of a business, such notice may be sent to any partner, principal officer, director, owner or co-owner, or joint venturer. If no return receipt is received within 10 calendar days of mailing, receipt will then be presumed.

#### 509.405 Effect of listing. #### 509.405-1 Continuation of current contracts. (a) Consider terminating a current contract under any of the following circumstances: (1) Any of the 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) Determine which of the following is in the Government’s best interest: (1) Terminate the contract for either convenience or cause. (2) Cancel under appropriate contract clauses (e.g., 552.238-73, Cancellation). (3) Use other available alternatives under: (i) FAR 3.2 and 503.2. (ii) FAR 3.7 and 503.7.
(c) Before making a decision, consult with legal counsel and consider these 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 items, etc.).
(d) The debarring official is the designee under FAR 9.405-1(c).

#### 509.405-2 Restrictions on subcontracting. The debarring official is the designee under FAR 9.405-2(a).

#### 509.406 Debarment. #### 509.406-1 General. The debarring official is the designee under FAR 9.406-1(c).

#### 509.406-3 Procedures. (a) Investigation and referral. (1) Refer to the debarring official matters involving serious contract improprieties or performance deficiencies. Performance deficiencies that continue over a period of time or apply to more than one contract may warrant debarment consideration. (2) Refer possible criminal or fraudulent activities to the Office of the Inspector General (OIG). See 5 CFR 6701.107, Reporting Waste, Fraud, Abuse, and Corruption. If, after investigation, the OIG believes a cause for debarment exists, it will refer the matter to the debarring official for consideration of debarment action.
(b) Reports. Include in referrals to the debarring official a report that contains at least the following: (1) The recommendation and supporting rationale. (2) A list of parties to be considered for possible debarment, including the contractor, principals, and affiliates. Include last known home and business addresses, zip codes, and DUNS Number. (3) A statement of facts. (4) Copies of documentary evidence and a list of witnesses. Include addresses and telephone numbers. Determine their availability to appear at a fact-finding proceeding and identify the subject matter of their testimony. (5) GSA’s acquisition history with the contractor. Include recent experience, copies of the pertinent contracts, and an explanation of impact debarment would have on GSA programs. OIG referrals do not require this explanation; the debarring official will obtain the information directly from the contracting activity(s). (6) A list of any known active or potential criminal investigations, criminal or civil proceedings, or administrative claims before the Board of Contract Appeals. (7) A statement regarding the impact of the debarment action on GSA programs. This statement is not required for referrals by the Inspector General; the debarring official will obtain a statement directly from the contracting activity(s).
(c) Review. The debarring official will review the report, and after coordinating with assigned legal counsel, either: (1) Initiate debarment action. (2) Decline debarment action. (3) Request additional information. (4) Refer the matter to the OIG for further investigation and development of a case file.
(d) Decisionmaking process. (1) The debarring official will provide: (i) Notice of declinations, proposed debarments, and decisions to the referring activity. (ii) Notice of proposed debarment to each party being considered for debarment. (iii) Decision notices to each party after considering information in the administrative record and information and argument submitted by the affected party or parties. (2) A party proposed for debarment: (i) Has 30 calendar days after receipt of the notice to respond to the debarring official or the debarment becomes final. (ii) May request and receive a copy of the administrative record that was the basis for the proposed debarment. If information is withheld, the party will be notified and provided the reason. (iii) May request the opportunity to present information and argument in person to the debarring official. The debarring official will schedule an oral presentation within 20 calendar days of receipt of the request, unless a longer period of time is requested by the party. An oral presentation is informal and a transcript usually is not made. The party may supplement the oral presentation with written information and arguments. (iv) May identify to the debarring official material facts in dispute and the bases. For an action other than one based on a conviction or civil judgment, a party may request review and a written finding by a fact-finding official.
(3) The debarring official will determine whether there is a genuine dispute of material fact. If so, the debarring official refers the matter to a fact-finding official, who will take the following action as appropriate: (i) Schedule a hearing within 20 calendar days after receipt of a request to resolve disputed facts. (ii) Grant extensions for good cause. (iii) Provide notice of scheduled hearing. (iv) Conduct hearings under rules consistent with FAR 9.406-3(b)(2). (v) Resolve facts in dispute and provide the debarring official with written findings of fact based on a preponderance of the evidence. The fact-finding official provides the written findings of fact (together with a transcription of the proceeding, unless waived) within 20 calendar days after the hearing record closes.

#### 509.407 Suspension. #### 509.407-1 General. The suspending official is the designee under FAR 9.407-1(d).

#### 509.407-3 Procedures. (a) General. The procedures in 509.406-3 apply to suspension actions except as noted in paragraph (b) of this section. (b) Fact-finding. (1) Fact-finding will not be conducted in an action: (i) Based on an indictment. (ii) When the suspending official finds no genuine dispute of material facts. (2) If the action is not based on an indictment, the suspending official must coordinate with the Department of Justice or state prosecutorial authority through OIG. Based on the advice received, the suspending official will determine if fact-finding would impair substantial interests of the Federal or state Government. In an action not based on an indictment, a suspended party may: (i) Identify to the suspending official material facts in dispute and the bases. (ii) Request review and a written finding by a fact-finding official to resolve genuine disputes of material fact. For procedures involving a genuine dispute of material fact, see 509.406-3(d)(3).

### Subpart 509.5—Organizational and Consultant Conflicts of Interest

#### 509.503 Waiver.

The Senior Procurement Executive is the designee under FAR 9.503.