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Mandatory Suspension/Debarment Review For "Poorly Performing" Contractors

Client Alert | 1 min read | 03.23.10

In another sign that the government is increasing its focus on suspension and debarment, a February 2010 Department of Homeland Security IG report found that DHS has been reluctant to apply existing procedures against poorly performing contractors and recommended that DHS develop policies to determine whether to refer them to the suspension and debarment official when their contracts have been terminated for default or are being considered for default. DHS management concurred with the recommendation and will now require that contracting officers provide any determination of nonresponsibility to the S/D official when the determination is based in whole or part on the contractor's (1) lack of satisfactory performance record under DHS contracts; (2) lack of satisfactory record of integrity and business ethics; or (3) inability to qualify or ineligibility under applicable laws and regulations.

Insights

Client Alert | 3 min read | 06.12.26

DOJ Guidance Backs Away From Disparate Impact Liability

On June 9, 2026, the U.S. Department of Justice (DOJ) issued a formal opinion concluding that the Equal Opportunity Employment Commission’s (EEOC) existing interpretations of Title VII of the Civil Rights Act of 1964 (Title VII) disparate-impact liability, including the Uniform Guidelines on Employee Selection Procedures (UGESP), are unconstitutional. According to the opinion, EEOC’s prior interpretations contemplate liability based on disproportionately adverse effects alone, without regard to an employer’s likely intent, rather than treating disparate impact as an evidentiary mechanism to “smoke out” intentional discrimination. DOJ found that this approach functions as a “qualified racial-proportionality mandate” that places “a racial thumb on the scales, often requiring employers to evaluate the racial outcomes of their policies, and to make decisions based on (because of) those racial outcomes.” The opinion fulfills one mandate of Executive Order 14281, which rejected disparate-impact liability insofar as it “creates a near insurmountable presumption that unlawful discrimination exists wherever there are any differences in outcomes among different [demographic groups].”...