The excluded parties list system is a database that the General Services Administration maintains. The GSA is an independent government agency established in 1949 to help manage Federal agencies. The main intention of the EPLS is to identify the suppliers and the vendors who were excluded from receiving the Federal contracts, certain contractors and some types of financial and non-financial Federal assistance.
The EPLS Database
The GSA maintained and updated the EPLS system until it was moved into a completely new database service called the System for Award Management. The new database combines several federal procurement systems and the catalog for Federal Domestic Assistance into one system. The federal government uses the EPLS database to identify and list the sanctioned companies and individuals that are debarred and prohibited from certain federal contracts, bid on contracts, and receive government contracts. Programs that receive Federal funds for the program should access SAM.gov to search and review the status of consultants, contractors, service providers, subcontractors, and vendors doing business with the Federal government.
Distinct Features Between SAM and EPLS
The General Services Administration has announced that it was migrating the data from the EPLS to the new and more comprehensive system of award management known as the SAM. The intention of doing so is to streamline the contracting process of the Federal Government. The EPLS was a separately maintained list that included only the entities and the individuals who were debarred or suspended from doing any type of business with the Federal government and were collectively referred to as the excluded parties.
Government agencies meticulously screened the EPLS as a component of the procurement process of its new vendors to ensure that the entity or individual was not completely excluded from Federal contracting participation. Some important changes that were realized after the incorporation of EPLS are as follows.
Search Options in the Two Databases
EPLS features an Advanced search option, Multiple search features, an exact name and SSN search feature, etc. However, SAM, on the other hand, allows for a single name search only; as we begin to type in the name, it auto-displays all the possible name matches. EPLS includes three party types: firm, individual, and vessel, and its special entity designation is considered to be a miscellaneous party type.
Treatment and Cause Codes
A cause and treatment or CT code, which identifies the reason for the entity’s debarment, will no longer be included in exclusion records. Before the migration, CT codes will continue to appear for all exclusion records. Four exclusion types, namely ineligible (proceedings pending), ineligible (proceedings complete), prohibition/restriction, and voluntary exclusion, have been assigned to the CT codes moving forward. Noting functionality that is still there after the migration is equally crucial, and it is particularly crucial when attempting to do punishment and exclusion screens.
System for Verifying the Social Security Number
The Social Security number can be used to filter the results of a name search, but SAM does not permit using the SSN to search the exclusion list. Since the date of birth is not available in SAM, SSN verification is crucial for confirming a match.
Checking the Excluding Agency
The record identifies the government agency that enforced the exclusion. The support of the excluding agency makes finding out if HHS or another agency excluded the party easier. Because of the modification to the search features and revised layout, it could take some time to become used to SAM and learn its subtleties.
It is vital to remember that the results obtained from screening the SAM exclusion list will be comparable to the ones obtained by screening EPLS in the past. If this switch causes too much uncertainty, other possibilities, such as outsourcing the entire screening process or making it simpler, would be worth considering.
Verification of Address
Both the EPLS and the SAM can be used to verify the address. After identifying a possible record match, only the street address can be verified. Both the SAM and the EPLS publicly display the state, city, and ZIP codes.
Role of EPLS in Federal Contracting
The Excluded Parties List System (EPLS) is a database maintained by the Federal government as part of its SAM to help identify the individuals, companies, and other entities that are debarred from receiving federal contracts, subcontractors, and other financial and non-financial assistance. EPLS plays a significant role in maintaining the integrity of the procurement process. Its key functions in Federal contracting are as follows.
Prevent Entities that are not Eligible to avail of Federal contracts
The EPLS included companies or persons that had their eligibility for government contracts revoked or suspended as a result of infractions, fraud, subpar work, or unethical behaviour. To guarantee compliance, government organizations had to review this list prior to awarding contracts. Organizations may also be excluded for reasons such as criminal behavior, contract violations, or non-compliance with legal standards.
It Ensures Compliance with Federal Regulations
The FAR requires federal agencies to verify that they are only granting contracts to responsible contractors and to review SAM, which includes EPLS information. By examining the EPLS, agencies reduce the possibility of giving contracts to dubious companies, safeguarding public funds.
Agencies mitigate the possibility of fraud or poor performance by confirming that contractors or recipients are not excluded, suspended, or debarred. Awards given to organizations on the exclusion list would violate the law and might lead to fines, squandered money, or even public controversy.
When awarding grants and cooperation agreements, agencies must adhere to Office of Management and Budget regulations. According to these rules, recipients of federal aid must also successfully complete EPLS checks to be eligible to receive federal funding.
EPLS Enhances Transparency in Contracting and Improves Public Access
Because the list was publicly available, businesses, subcontractors, and other interested parties could confirm if a particular entity qualified for federal contracts or funding. Companies sought to avoid being on the EPLS by upholding moral and legal norms, as being named on the list might seriously harm their standing in the public eye.
Impact of EPLS on Contractors and Subcontractors
Being included in EPLS had serious repercussions for contractors and subcontractors. A contractor was not allowed to get any federal contracts if they were listed on EPLS. This also applies to subcontracts under federal prime contracts, so a business may be disqualified if it is mentioned even if it was a subcontractor. A company’s reputation could be seriously harmed by being suspended or barred.
It made it harder to get business, even outside of government procurement, by indicating that the organization had broken ethical, legal, or contractual duties. For businesses participating in federal contracts, this introduced an extra degree of due diligence, guaranteeing compliance throughout the entire contracting process.
Streamlining the Federal Procurement Process
The procedure was made simpler for both contracting officers and prospective bidders by the integration of EPLS into SAM, which allowed federal contracting officers and entities to quickly review all required information in one location. Additionally, prime contractors had to make sure that none of their subcontractors were listed on the EPLS. This ensured compliance at every stage of the contracting process by adding another layer of due diligence for businesses participating in federal contracts.
The Process of Debarment and Suspension From Federal Contracting
The process of debarment and suspension follows these general steps.
- Investigation or Review: Federal authorities or inspectors general may investigate a contractor’s case if the contractor is the subject of an investigation or has committed serious infractions.
- Notice of Intent: Should the review reveal grounds for suspension or debarment, the government will notify the contractor, providing an explanation and a chance for a response.
- Decision: The government makes the decision to proceed with suspension or debarment following the response time. Suspension is usually only in place while investigations are ongoing. Conversely, debarment may continue for a number of years.
- Appeal: Although it can be a drawn-out and difficult procedure, contractors have the option to appeal debarment or suspension rulings to federal courts.
The Federal agencies are required to verify the status of the contractors and the recipients of the SAM, which includes their EPLS information. By verifying that the recipients and the contractors are not suspended and debarred, the agencies are able to reduce the risk of fraud and subpar performance. The awards that are made to the entities on the exclusion list are non-compliant and might result in penalties and funds getting wasted.
The EPLS plays an important role in maintaining the transparency, accountability, and also the fairness of the Federal contracting process. It ensures that the funds of the taxpayers are spent appropriately and that the government contracts are awarded to contractors with the required competence, integrity, and reliability. For federal agencies, compliance with the EPLS checks is mandatory and it is the cornerstone of the US. procurement system. MySetAside helps small businesses clear these checks and avail of the federal contracts that are allotted for small and disadvantaged businesses.