Suspension and Debarment: DOD Has Active Referral Processes, but Action Needed to Promote Transparency

Abstract : DoD spends more than any other federal agency on contracts for goods and services and must be able to protect itself from irresponsible contractors. Once a case of misconduct -- such as fraud -- is identified, DoD can use suspensions and debarments to prevent irresponsible contractors from receiving new contracts. As requested, GAO determined the following: (1) the extent to which DoD has processes for identifying and referring cases of contractor misconduct for possible suspension or debarment, and (2) how DoD makes suspension and debarment decisions once cases have been referred for potential action. GAO's review focused on four DoD components -- the Departments of the Air Force, Army, Navy (including the U.S. Marine Corps), and Defense Logistics Agency -- which together took a total of 3,443 suspension and debarment actions during fiscal years 2009 through 2011, accounting for nearly 100 percent of all such actions in DoD. GAO reviewed DoD and component regulations, procedures, and policies; reviewed case files; analyzed information from federal databases; and interviewed DoD and component officials. GAO recommends that DoD ensure that DoD components are aware of and comply with the requirement to notify GSA when awarding contracts to suspended or debarred contractors based on compelling reason determinations. DoD concurred with this recommendation.