The federal government spends approximately $500 billion per year on federal contracts—an amount it describes as roughly the size of Sweden's economy. As a result, the government must protect itself from the bad apples, i.e., companies and individuals who will not perform as promised or might commit fraud or other misconduct. The government's power to suspend or debar companies and individuals from receiving government contracts is one of the most potent weapons in the federal arsenal of protective measures. Indeed, suspension and debarment are commonly referred to as the ''death penalty'' because of their devastating effects.
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Originally published in Bloomberg BNA's Federal Contracts Report
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