# 509.405-1 Continuation of current contracts.

1. (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. (1) Any circumstances giving rise to the debarment or suspension also constitute a default in the contractor’s performance of the contract.

   2. (2) The contractor presents a significant risk to the Government in completing the contract.

   3. (3) The conduct that provides the cause of the suspension, proposed debarment, or debarment involved a GSA contract.

2. (b) Before terminating a contract when a contractor appears as a current exclusion in the SAM, consider the following factors:

   1. (1) Seriousness of the cause for debarment or suspension.

   2. (2) Extent of contract performance.

   3. (3) Potential costs of termination and reprocurement.

   4. (4) Need for or urgency of the requirement, contract coverage, and the impact of delay for reprocurement.

   5. (5) Availability of other safeguards to protect the Government’s interest until completion of the contract.

   6. (6) Availability of alternate competitive sources to meet the requirement (e.g., other multiple award contracts, readily available commercial items.)

3. (c) The responsibilities of the agency head under FAR 9.405-1 are delegated to the Senior Procurement Executive.