SECTION 392.319. Debarment and Suspension of Current and Potential Contractor Rights

(a) Requirements in this section apply to all types of contracts with DARS.

(b) Debarment is the termination of rights to continue an existing contract, to receive a new contract, to participate as a contractor or manager, to provide goods or services to DARS consumers either directly or indirectly while working for a DARS or HHSC contractor, or to make a bid, offer, application, or proposal for a DARS or HHSC contract. The debarment is for a specified time commensurate with the seriousness of the violation, the extent of the violation, prior impositions of sanctions or penalties, willingness to comply with program rules and directives, and other pertinent information. Generally, debarment does not exceed six years. Where conditions warrant, a longer period may be imposed.

(c) Suspension is the temporary suspension of a contractor's or potential contractor's rights to conduct business with DARS or HHSC. A suspension is in effect until an investigation, hearing, or trial is concluded and DARS can make a determination about:

(1) the contractor's future right to contract or subcontract; or

(2) a potential contractor's future right to have DARS or HHSC consider its offer, bid, proposal, or application.

(d) For purposes of both debarment and suspension of contractual rights, DARS or HHSC may impute the conduct of an individual, corporation, partnership, or other association to the contractor, potential contractor, or the responsible entity of the contractor or potential contractor with whom the individual, corporation, partnership, or other association is employed or otherwise associated. Even though the underlying conduct may have occurred while an individual, corporation, partnership, or other association was not associated with the contractor or potential contractor, suspension of contractual rights or debarment may be imposed. Remedial actions taken by the responsible officials of the contractor or potential contractor are considered in determining whether either suspension of contractual rights or debarment is warranted.

Source Note: The provisions of this §392.319 adopted to be effective June 17, 2015, 40 TexReg 3638