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9.2 Additional Requirements The debarment and suspension regulations restrict awards, subawards, contracts, and subcontracts with parties that are debarred, suspended, or otherwise excluded, or declared ineligible for participation in federal assistance programs and activities.47 If applicable, a contract or subcontract must not be made to parties listed on the governmentwide exclusions in the System for Award Management (SAM). SAM Exclusions is the list maintained by the General Services Administration that contains the names of parties that are debarred, suspended, or otherwise excluded, or declared ineligible under statutory or regulatory authority other than Executive Order 12549.48 SAM Exclusions can be accessed at www.sam.goy.49 In general, an "excluded" party cannot receive a federal grant award or a contract considered to be a "covered transaction," which includes parties that receive federal funding indirectly such as subawards and subcontracts. The key to the exclusion is whether there is a covered transaction. A covered transaction is a nonprocurement transaction at either a primary or secondary tier.50 Specifically, a covered transaction includes the following contracts for goods or services under FEMA grant and cooperative agreement programs: ■ The contract is at least $25,000. ■ The contract requires the approval of FEMA, regardless of amount. ■ The contract is for federally required audit services. ■ It is a subcontract for $25,000 or more. 51 9.3 Suggested Language The following provides a debarment and suspension clause. It also incorporates an optional method of verifyingthat contractors are not excluded or disqualified52: 47 See 2 C.F.R. Part 200, Appendix II, § H; 2 C.F.R. § 200.213. See also 2 C.F.R. Parts 180, 3000. 48 See 2 C.F.R. Part 200, Appendix ll, § H. 49 2 C.F.R. § 180.530. 50 The regulations at 2 C.F.R. Parts 180 and 3000 are titled "non procurement" because they do not apply to procurements by the federal government but rather to federal financial assistance. There are separate debarment and suspension regulations covering procurements by the federal government. However, although the term "covered transactions" under 2 C.F.R. Parts 180 and 3000 does not include contracts awarded by the federal government, it does include some contracts awarded by recipients and subrecipients. 51 See 2 C.F.R. §§ 180.220, 3000.220. 52 Per 2 C.F.R. § 180.300, non-federal entity about to enter into an applicable contract, or a contractor about to entire into an applicable subcontract, must verify that the contractor or subcontractor is not excluded or disqualified by doing one of three things: 1) check SAM Exclusions; 2) collect a certification from the contractor or subcontractor; or 3) add a clause or condition to the contract or subcontract. The additional suggested language in this sample clause is for purposes of this requirement. 27