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FAR and DFARS › FAR Part 9: Contractor Qualifications › Subpart 9.4

FAR 9.405-1 Continuation of current contracts.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains what agencies may do with existing contracts when a contractor is debarred, suspended, proposed for debarment, or voluntarily excluded. Agencies may generally continue those existing contracts unless the agency head directs otherwise, but they face restrictions on placing new orders or extending work without a written determination of compelling reasons. For contractors declared ineligible under 10 U.S.C. 983, agencies must terminate existing contracts and cannot place new orders or award new contracts, with limited exceptions.

Applies to: Agencies and contractors with existing contracts where the contractor is debarred, suspended, proposed for debarment, voluntarily excluded, or declared ineligible

What it requires

  • Agencies may continue contracts or subcontracts in existence at the time of debarment, suspension, proposed debarment, or voluntary exclusion, unless the agency head directs otherwise.
  • A decision on the type of termination action, if any, should be made only after review by agency contracting and technical personnel and by counsel.
  • Unless the agency head makes a written determination of compelling reasons, ordering activities shall not place orders exceeding the guaranteed minimum under indefinite quantity contracts, place orders under Federal Supply Schedule contracts, blanket purchase agreements, or basic ordering agreements
  • A covered agency shall terminate existing contracts and shall not place new orders or award new contracts with contractors declared ineligible under 10 U.S.C. 983, except for contracts at or below the simplified acquisition threshold or contracts for the acquisition of commercial products and commer

Key terms: debarred · suspended · proposed for debarment · voluntarily excluded · ineligible contractors

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Contractors debarred, suspended, proposed for debarment, or voluntarily excluded. (1) Notwithstanding the debarment, suspension, proposed debarment, or voluntary exclusion, of a contractor, agencies may continue contracts or subcontracts in existence at the time the contractor was debarred, suspended, proposed for debarment, or voluntarily excluded, unless unless the agency head directs otherwise. A decision as to the type of termination action, if any, to be taken should be made only after review by agency contracting and technical personnel and by counsel to ensure the propriety of the proposed action.

(2) For contractors debarred, suspended, proposed for debarment, or voluntarily excluded, unless the agency head makes a written determination of the compelling reasons for doing so, ordering activities shall not—

(i) Place orders exceeding the guaranteed minimum under indefinite quantity contracts;

(ii) Place orders under Federal Supply Schedule contracts, blanket purchase agreements, or basic ordering agreements; or

(iii) Add new work, exercise options, or otherwise extend the duration of current contracts or orders.

(b) Ineligible contractors. A covered agency, as defined in 9.110-1, shall terminate existing contracts and shall not place new orders or award new contracts with contractors that have been declared ineligible pursuant to 10 U.S.C. 983 (see 9.110), except for contracts at or below the simplified acquisition threshold or contracts for the acquisition of commercial products and commercial services.

Sections it refers to

  • 9.110-1 Definitions.
  • 9.110 Reserve Officer Training Corps and military recruiting on campus.

Sections that refer to it

← 9.405 Effect of listing. · 9.405-2 Restrictions on subcontracting. →

Rule changes for FAR Part 9

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 9.405-1 Continuation of current contracts · SpendQuery