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Department of the Treasury
DEBARMENTS, SUSPENSIONS &
DISQUALIFICATIONS PURSUANT TO
EXECUTIVE ORDER #34/1976

CIRCULAR LETTER NO.: 93-13-GSA

ORIGINATING AGENCY: GENERAL SERVICES ADMINISTRATION

EFFECTIVE DATE: 06/01/93

EXPIRATION DATE: INDEFINITE

SUPERSEDES:

SUBJECT: DEBARMENTS, SUSPENSIONS &
DISQUALIFICATIONS PURSUANT TO
EXECUTIVE ORDER #34/1976

ATTENTION: ALL DEPARTMENTS AND AGENCIES

FOR INFORMATION CALL: BRIAN NEWMAN
PHONE: 609/292-4330

I. PURPOSE

The purpose of this Circular Letter is to establish
State policy and procedure and to outline the
responsibilities of each State Department and its
subdivisions for the reporting of debarment, suspension
and disqualification actions taken against firms and
individuals wishing to transact business with the State
departments and agencies under Executive Order #34/1976.

II. POLICY

Pursuant to Executive Order #34/1976, State departments
and agencies are to establish procedures to ensure that
firms and individuals providing goods and services to
the State conduct business ethically and honestly.
Debarment, suspension and disqualification are measures
that will be used to exclude or render ineligible firms
and individuals from participating in contracts and
subcontracts with the State or with the State's
assistance, on the basis of lack of responsibility.

All departments and agencies shall submit to the
Department of Treasury, General Services Administration,
certain information about those firms and individuals
against whom they have taken debarment, suspension or
disqualification actions. The Department of Treasury,
General Services Administration shall provide this
information for public inspection in accordance with the
guidelines given in Executive Order #34/1976.

III. DEFINITIONS

A. DEBARMENT

An exclusion from state contracting, on the basis
of a lack of responsibility evidenced by an
offense, failure, or inadequacy of performance, for
a reasonable period of time commensurate with the
seriousness of the offense, failure, or inadequacy
of performance.

B. SUSPENSION

An exclusion from state contracting for a temporary
period of time, pending the completion of an
investigation or legal proceedings.

C. DISQUALIFICATION

A debarment or a suspension which denies or revokes
a qualification to bid or otherwise engage in state
contracting which has been granted or applied for
pursuant to statute, or rules and regulations.

D. STATE

The State of New Jersey, or any of the departments
or agencies in the Executive Branch of government
with the lawful authority to engage in contracting.

E. PERSON

Any natural person, company, firm, association,
corporation, or other entity.

F. STATE CONTRACTING

Any arrangement giving rise to an obligation to
supply any thing to or perform any service for the
State, other than by virtue of state employment, or
to supply any thing to or perform any service for a
private person where the State provides substantial
financial assistance and retains the right to
approve or disapprove the nature or quality of the
goods or service or the persons who may supply or
perform the same.

G. AFFILIATES

Persons having an overt or covert relationship such
that any one of them directly or indirectly
controls or has power to control another.

H. GSA-40 NEW JERSEY STATE DEBARMENT TRANSMITTAL

The Department of Treasury, General Services
Administration form to be used by state departments
and agencies to transmit the information required
for compliance with Executive Order #34/1976
reporting by the Department of the Treasury.

IV. RESPONSIBILITIES

A. STATE DEPARTMENTS AND AGENCIES

All state departments and agencies of the Executive
Branch are to comply with the following Procedures
for reporting all debarment, suspension and
disqualification actions taken by them in
accordance with Executive Order #34/1976.

The originating department or agency is responsible
to timely notify the Treasury GSA of any changes in
status, disposition, effective or expiration dates
of actions they have taken against any person.

B. DEPARTMENT OF TREASURY, GENERAL SERVICES
ADMINISTRATION

The Department of Treasury, General Services
Administration will compile the reports of the
state departments and agencies, and make available
for public inspection a full list of all debarment,
suspension and disqualification actions taken by
state departments and agencies.

The Department of Treasury, General Services
Administration is responsible for maintaining a
supply of GSA-40 forms for agency use.

V. PROCEDURE

A. As soon as a final determination has been made by
the Executive Head of the department or agency, or
by the Attorney General's office, on the
disposition of a debarment, suspension or
disqualification action against any person in
accordance with Executive Order #34/1976, that
office shall file a completed GSA-40 New Jersey
State Debarment Transmittal form with the
Department of Treasury, General Services
Administration. This form must be signed by the
Executive Head of the department or agency (or
designee), or the the Attorney General (or
designee), or both, in accordance with the
Executive Order. No other supporting documentation
is required.

The originating department or agency must monitor
the expiration dates of their actions on the
INFOBANK reporting system and timely notify
Treasury GSA if there are any changes to the
status, disposition, effective or expiration dates
by submitting a GSA-40 form for extension or
revision. Actions will be purged from the
reporting system on the expiration date unless an
extension is timely filed.

B. The debarment reporting coordinator at GSA will
enter the data into the INFOBANK on-line reporting
system within two (2) working days of receipt of
the completed GSA-40 form.

The debarment coordinator will monitor the
expiration dates of all actions and purge records
that have reached their expiration date unless an
approved extension is received prior to the
expiration date.

The original, signed GSA-40 form will be retained
for record purposes for two (2) years beyond the
expiration date of the debarment, suspension or
disqualification action as reported by the
department or agency on the form.

C. The INFOBANK on-line debarment reporting system is
available, with appropriate security, to anyone who
has access to a computer terminal connected to the
Garden State Network. It is advised that anyone
who regularly engages in state purchasing,
contracting or fiscal processing activities, and
anyone who is responsible for monitoring the status
of debarments, suspensions or disqualifications,
acquire access to the INFOBANK.

Brian Newman
Acting GSA Administrator

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