(a) The Assistant Postmaster General, Bureau of Facilities, shall establish and maintain a consolidated list of firms and individuals to whom contracts will not be awarded and from whom bids or proposals will not be solicited as provided in § 1-1.603 of the Federal Procurement Regulations (41 CFR 1-1.603).

(b) The list shall show as a minimum the following information:

(1) The names of those firms or individuals debarred, suspended or placed in ineligibility status (in alphabetical order) with appropriate cross references where more than one name is involved in a single action;

(2) The basis of authority for each action;

(3) The extent of restrictions imposed; and

(4) The termination date for each debarred and suspended listing.

(c) The list shall contain the names of all firms and individuals debarred, suspended, or declared ineligible by action of the Post Office Department and also the names of all firms and individuals debarred, suspended, or declared ineligible by the Comptroller General or other Governmental agencies and departments as provided by § 1-1.602-1 of the Federal Procurement Regulations (41 CFR 1-1.602-1).

(d) Each Bureau Head shall report to the Assistant Postmaster General, Bureau of Facilities, in the manner directed by him, each action taken to debar, suspend or declare ineligible a firm or individual, or to remove a debarment, suspension, or ineligibility designation. The Judicial Officer shall transmit to the Assistant Postmaster General, Bureau of Facilities, or his designated representative, a copy of each order by the Judicial Officer, debarring, suspending or declaring ineligible a contractor or removing a debarment or suspension or declaration of ineligibility previously issued against a contractor. The Assistant Postmaster General, Bureau of Facilities, shall cause the various Bureaus of the Department and all Postal Field Service facilities exercising contractual functions to receive each change made in the list as it occurs. § 956.4 Treatment to be accorded firms

or individuals and their affiliates in debarred status.

(a) A firm or individual may be listed as debarred, suspended, or ineligible for

any of several reasons. The treatment to be accorded a firm or individual listed is as follows:

(1) When a statute, Executive order or controlling regulation of another Government agency prescribes the treatment to be accorded a firm or individual and their affiliates in a debarred, suspended or ineligible status, the Department will conform to the requirements of such statute, Executive order or regulation.

(2) In all other cases, bids, and proposals shall not be accepted or solicited from such listed firms or individuals and their affiliates.

(3) Where a firm or individual listed as debarred, suspended, or ineligible is proposed as a subcontractor, the Contracting Officer shall decline to approve any subcontracting with such firm or individual in any instance in which consent is required of the Government before the contract is made.

(4) Notwithstanding any provisions of this part, if the awarding of a contract or a subcontract to a firm or individual listed as debarred, suspended, or ineligible is determined by the Bureau Head having cognizance of the contract or subcontract to be in the best interest of the Government, such Bureau Head, after submitting his reasons therefor in writing to the Assistant Postmaster General, Bureau of Facilities, and after receiving his consent, may authorize the making of a contract with such listed contractor or subcontractor.

(5) All known affiliates of a firm or individual may be included in the order of debarment but only after due consideration is given by the acting authority to all relevant facts and circumstances.

(6) The debarment, suspension, or declaration of ineligibility of a firm or individual does not of itself affect the rights and obligations of the parties to any existing contract. § 956.5

Causes and conditions for debarment.

(a) A Bureau Head is authorized with the concurrence of the General Counsel to debar a firm or individual in the public interest in accord with procedures set forth in this part for any of the causes and under the conditions following. (b) Causes:

(1) Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract, or subcontract there

under, or in the performance of such contract or subcontract.

(2) Conviction under the Federal Antitrust Statutes arising out of the submission of bids or proposals.

(3) Violations of a nature set forth in this part in connection with a Department contract which are regarded by the Department to be of so serious a nature as to justify debarment action:

(i) Wilful failure to perform a Department contract in accordance with the specifications or within the time limit provided in the contract;

(ii) A record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more Department contracts: Provided, That such failure or unsatisfactory performance has occurred within a reasonable period of time preceding the determination to debar, and that failure to perform or unsatisfactory performance caused by acts beyond the control of the firm or individual as a contractor shall not be considered to be a basis for debarment;

(iii) Violation of a contractual provision against contingent fees;

(iv) Acceptance of a contingent fee which is paid in violation of a contractual provision against contingent fees.

(4) Any other cause of such serious and compelling nature, affecting responsibility as a Government contractor, as may be determined by the Department to warrant debarment.

(5) Debarment by some other Executive agency or department.

(c) Conditions:

(1) The existence of any of the causes set forth in paragraph (b) of this section does not necessarily require that a firm or individual be debarred. In each instance, whether the offense, failure, or inadequacy of performances, be of a criminal, fraudulent, or serious nature, the decision to debar shall be made within the discretion of the Bureau Head and shall be rendered in the best interest of the Government. Likewise, all mitigating factors may be considered in determining the seriousness of the offense, failure, or inadequacy of performance, and in deciding whether debarment is warranted.

(2) The existence of a cause set forth in paragraph (b) (1) or (2) of this section shall be established by criminal conviction in a court of competent jurisdiction. In the event that an appeal taken from such conviction results in a reversal of the conviction, the debarment shall be

removed upon the request of the bidder, unless other causes for debarment exist.

(3) The existence of a cause set forth in paragraph (b) (3) or (4) of this section shall be established by evidence which the Department determines to be clear and convincing in nature.

(4) Debarment for the cause set forth in paragraph (b) (5) of this section (debarment by another agency) shall be proper provided that one of the causes for debarment set forth in paragraph (b) (1) through (4) of this section was the basis for debarment by the original debarring agency.

§ 956.6 Period of debarment.

Where statutes, Executive orders, or controlling regulations of other agencies provide a specific period of debarment, they shall be controlling. In other cases, debarment by the Department shall be for a reasonable, definite, stated period of time, commensurate with the seriousness of the offense or the failure or inadequacy of performance. As a general rule, a period of debarment shall not exceed 3 years. However, when debarment for an additional period is deemed necessary, notice of the proposed additional debarment shall be furnished to the firm or individual as in the case of original debarment. Except as provided herein or as precluded by statute, Executive order or controlling regulations of another agency, debarment may be removed or the period therefor may be reduced by the Bureau Head who initiated the initial debarment, upon a submission of an application by the debarred firm or individual supported by documentary evidence, setting forth appropriate grounds for the granting of relief, such as newly discovered material evidence, reversal of a conviction, bona fide change of ownership or management, or the elimination of the causes for which debarment was imposed. Except as provided herein, the Bureau Head may, in his discretion, deny any application for removal of debarment or for reduction of its period or may refer the same to the Judicial Officer for hearing and final departmental determination. In any case in which a debarment is removed or the period thereof is reduced, the Bureau Head approving the removal or reduction shall, within 10 days from the date thereof, transmit to the Judicial Officer, for filing, a notice thereof together with a statement of the reasons

for the removal of the debarment or the reduction of the period of debarment. § 956.7 Procedural requirements relating to the imposition of debarment.

(a) The Bureau Head shall initiate a debarment proceeding by sending to the firm or individual proposed to be debarred a written notice of proposed debarment. Such notice shall be served in any manner sufficient to establish the giving thereof, as for example, by sending it to the last known address of the firm or individual by certified mail, return receipt requested. The notice shall state: (1) That debarment is being considered; (2) the reasons for the proposed debarment; (3) the period of debarment and the proposed effective date thereof; (4) that the debarment will not become effective until after a hearing if such hearing is requested within 20 days following the receipt of the notice of the proposed debarment; and (5) that the request for a hearing is to be accompanied by a statement setting forth the grounds upon which the proposed debarment will be contested. If no hearing is requested, the action of the Bureau Head shall become the final Departmental determination.

(b) A firm or individual who is served with a notice of proposed debarment may request a hearing by addressing such request to the Judicial Officer through the Bureau Head who initiated the debarment proceeding. Such hearing shall be governed by rules of procedure as set forth by the Judicial Officer. Except as provided in paragraph (c) of this section, the Judicial Officer or Acting Judicial Officer shall hear the matter and determine on the basis of the record established before him whether the proposed debarment action should be sustained. The criminal, fraudulent, or seriously improper conduct of an individual may be imputed to the firm with which he is connected where such grave impropriety was accomplished within the course of his official duty or was effected by him with the knowledge or approval of that firm. Likewise, where a firm is involved in criminal, fraudulent, or seriously improper conduct, any person who was involved in the commission of the grave impropriety may be debarred. The decision of the Judicial Officer shall be the final departmental decision. The Bureau Head initiating the debarment proceeding shall be repre

sented by the Office of the General Counsel.

(c) (1) The Judicial Officer shall make rules of procedure to govern hearings conducted by him under these provisions.

(2) When a Bureau Head proposes to debar a firm or individual already debarred by another Government agency for a term concurrent with such debarment, the debarment proceedings before this Department may be based entirely upon the record of facts obtained from such other agency or upon such facts and additional other facts. In such cases the facts obtained from the other agency shall be considered as established, but the party to be debarred shall have opportunity to present information to the Judicial Officer and to explain why the debarment by this Department should not be imposed.

§ 956.8 Suspension.

(a) A Bureau Head may, where the interests of the Government require, with the concurrence of the General Counsel, suspend any firm or individual:

(1) Suspected, upon adequate evidence, of

(1) Commission of fraud or a criminal offense as an incident to obtaining, or attempting to obtain, or in the performance of a public contract;

(ii) Violation of the Federal antitrust statutes arising out of the submission of bids and proposals; or

(iii) Commission of embezzlement, theft, forgery, bribery, falsification, or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty, which seriously and directly affects the question of present responsibility as a Government contractor; or

(2) For other cause of such serious and compelling nature, affecting responsibility as a Government contractor, as may be determined by the Bureau Head to warrant suspension. A pending hearing for debarment may be a cause of such serious and compelling nature as to warrant suspension.

(b) A suspension invoked by another agency of Government for any of the causes set forth in paragraph (a) (1) and (2) of 41 CFR 1-1.605-1 may be the basis for the imposition of a concurrent suspension by a Bureau Head.

(c) Any firm or individual suspended hereunder who believes that his suspen

sion has not been in accordance with these rules, or with applicable laws and regulations, may appeal to the Judicial Officer for a review of the suspension. The Judicial Officer shall, upon the basis of the papers submitted or upon other appropriate opportunity to be heard, expeditiously rule upon the validity of the suspension.

§ 956.9 Notice of suspension.

(a) The Bureau Head concerned shall cause a notice of the suspension to be served upon the firm or individual to be suspended by certified mail, return receipt requested, within 10 days after its effective date, which notice shall state:

(1) That the suspension is based:

(1) On information that the firm or individual has committed irregularities of a serious nature in business dealings with the Government, or

(ii) On irregularities which seriously reflect upon the propriety of further dealings of the firm or individual with the Government. The irregularities should be described in general terms without disclosing the Government's evidence;

(2) That the suspension is for a temporary period pending the completion of an investigation and such other proceedings as may follow therefrom;

(3) That bids and proposals will not be solicited from the firm or individual and, if received, will not be considered for award, unless it is determined by the Department to be in the best interests of the Government so to do.

(b) Answers to all inquiries concerning the suspension of any firm or individual shall be coordinated by the Bureau Head concerned with the General Counsel or shall be made by the General Counsel. Where a matter has been referred to the Department of Justice, the Post Office Department will not furnish any more information than is contained in the notice in answer to any inquiries until the Department of Justice has acquiesced in the furnishing of additional information.

(c) No suspension shall exceed 120 days. A suspension while in effect may be extended for an additional period of 120 days upon written determination of the reasons and necessity therefor. Notice of such extension of suspension shall be served upon the firm or individual in the manner hereinbefore set forth. In no event shall extensions of a sus

pension exceed in the aggregate a period of 1 year unless a debarment proceeding or a prosecutive action is pending, in which case successive additional periods of suspension may be imposed until the proceeding in question has been completed. The termination of a suspension, however, shall not prejudice a debarment proceeding which was pending or which may be brought thereafter for the same reasons that led to the suspension.

§ 956.10 Restrictions on suspended persons and firms.

Firms and individuals suspended under this part shall be subject during the period of suspension to the same restrictions, conditions and penalties set forth in § 956.4.

(a) The term "Department" means the U.S. Post Office Department.

(b) The term "Bureau Head" means the head of any Bureau or Office of the Post Office Department or his representative for the purpose of carrying out the provisions of Part 956 of this chapter.

(c) The term "General Counsel" includes his authorized representative.

(d) The term "Judicial Officer" includes the Acting Judicial Officer.

(e) "Debarment" means, in general, an exclusion from Government contracting and subcontracting for a reasonable, specified period of time commensurate with the seriousness of the offense or failure, or the inadequacy of performance.

(f) "Suspension" means a disqualification from Government contracting and subcontracting for a temporary period of time because a concern or individual is suspected upon adequate evidence of engaging in criminal, fraudulent, or seriously improper conduct.

(g) "Respondent" means any individual, firm or other entity which has been served a written notice of proposed debarment pursuant to Part 956 of this chapter.

(h) "The Docket Clerk" means the Docket Clerk of the Department, whose office is located at the Post Office Department, 12th and Pennsylvania Avenue NW., Washington, D.C. 20260.

§ 957.4 Initiation of debarment proceedings.

(a) A Bureau Head shall initiate a debarment proceeding by serving upon the proposed Respondent a written notice of proposed debarment in the manner hereinafter (§ 957.8 (d)) provided for the service of all other papers.

(b) The notice shall state:

(1) That debarment is being considered;

(2) The reasons for the proposed debarment;

(3) The period of debarment and the proposed effective date thereof;

(4) That the debarment will not become effective until after a hearing if such hearing is requested within 20 days following the receipt of the notice; and

(5) That the request for a hearing is to be submitted in the manner prescribed by the rules in this part, a copy of which shall be enclosed with the notice.

(c) If no hearing is requested within 20 days following the receipt of the notice, the action of the Bureau Head set forth in the notice shall become the final departmental determination without further notice to the Respondent.

(d) The party against which a final departmental determination has been entered pursuant to paragraph (c) of this section shall, however, at any time have the privilege of reopening a case for the limited purpose of contesting the issue of service. Such party's contentions on that issue shall be addressed to the Judicial Officer in the same manner as a request for a hearing (see § 957.5). The Judicial Officer may require such additional showings or proof as he may deem necessary on the issue of service and shall reopen any debarment proceeding previously closed pursuant to paragraph (c) of this section if he shall find that service was incomplete or otherwise failed to adequately advise of the pendency of the proposed debarment. § 957.5

The request for a hearing.

A respondent may, within 20 days following the receipt of a written notice of proposed debarment, file a request for a hearing before the Judicial Officer. The request shall be addressed to the Judicial Officer through the Bureau Head who initiated the debarment proceeding and shall be accompanied by a concise statement admitting, denying or explaining each of the allegations set forth in the notice of proposed debarment and stating the relief desired.

§ 957.6 Order relative to hearing.

(a) The Judicial Officer shall issue an order granting the Respondent's request for a hearing, establishing the time and place thereof and advising the Respondent of the consequences of a failure to appear at the hearing (see § 957.9).