41 U.S.C. § 6706

Three-year prohibition on new contracts in case of violation

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(a)Distribution of List.—The Comptroller General shall distribute to each agency of the Federal Government a list containing the names of persons or firms that a Federal agency or the Secretary has found to have violated this chapter.(b)Three-Year Prohibition.—Unless the Secretary recommends otherwise because of unusual circumstances, a Federal Government contract may not be awarded to a person or firm named on the list under subsection (a), or to an entity in which the person or firm has a substantial interest, until 3 years have elapsed from the date of publication of the list. If the Secretary does not recommend otherwise because of unusual circumstances, the Secretary shall, not later than 90 days after a hearing examiner has made a finding of a violation of this chapter, forward to the Comptroller General the name of the person or firm found to have violated this chapter.(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3814.)

Historical and Revision Notes
6706(a)	41:354(a) (1st sentence).	Pub. L. 89–286, § 5(a) (1st sentence), Oct. 22, 1965, 79 Stat. 1035.
6706(b)	41:354(a) (2d–last sentences).	Pub. L. 89–286, § 5(a) (2d–last sentences), Oct. 22, 1965, 79 Stat. 1035; Pub. L. 92–473, § 4, Oct. 9, 1972, 86 Stat. 790.

Historical and Revision Notes

6706(a)

41:354(a) (1st sentence).

Pub. L. 89–286, § 5(a) (1st sentence), Oct. 22, 1965, 79 Stat. 1035.

6706(b)

41:354(a) (2d–last sentences).

Pub. L. 89–286, § 5(a) (2d–last sentences), Oct. 22, 1965, 79 Stat. 1035; Pub. L. 92–473, § 4, Oct. 9, 1972, 86 Stat. 790.

In subsection (b), the word “entity” is substituted for “firm, corporation, partnership, or association” to use a single broad term clarifying that the prohibition applies to any kind of organization in which the person or firm has a substantial interest. The words “containing the name of such persons or firms” are omitted as unnecessary. The word “person” is substituted for “individual” for consistency in the subsection.

Notes of Decisions

Cited in 3 cases (2 in the last 5 years), 2016–2022 · leading case: Tri-Cnty. Contractors, Inc. v. Thomas Perez, 155 F. Supp. 3d 81 (D.D.C. 2016).

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Tri-Cnty. Contractors, Inc. v. Thomas Perez, 155 F. Supp. 3d 81 (D.D.C. 2016). · cites it 2× “§ 6707 (a), and is authorized to debar a federal contractor found to be in violation of either statute' — that is, to bar it from receiving federal contracts, see 41 U.S.C. § 6706 (b); 29 C.F.R. § 5.12 . The SCA goes farther — it requires the Secretary to “forward to the…”

Holstad v. United States Dep't of Labor (D. Minnesota 2021). “41 U.S.C. § 6706 . B. Factual Background Northwest Title is an insurance title firm that performs title searches and settlement services.”

BCFS Health & Human Servs. v. United States Dep't of Labor (W.D. Tex. 2022). “It states that “the presumptive statutory penalty for noncompliance with the SCA (as- suming SCA jurisdiction extends to cooperative agreements) is debarment ( 41 U.S.C. § 6706 (b)), the ‘death penalty’ of federal procurement law.”

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