§ 4-10 Debarment and Suspension.
RCNY § 4-10
(a)Applicability. It is the policy of the City that vendors are not subject to debarment pursuant to these Rules and agencies may not debar vendors based on the grounds set forth in this section. The activities and conduct indicated to be grounds for debarment listed in this section, however, are specifically referenced in City construction contracts as grounds for default. So as not to disturb the effect of those contract provisions with respect to default, the listing of the grounds for debarment shall remain in these Rules, although agencies may not use such grounds to institute a debarment proceeding.
(b)Grounds for debarment.
(1)Grounds for debarment include the following acts or omissions on the part of the vendor or any of its officers, directors, partners, five percent shareholders, principals, or other person substantially involved in its activities: (i) indictment or conviction under any state or federal law of any of the following except that indictment alone may be a cause for debarment only for such time as the indictment continues: (A) a criminal offense incident to obtaining or attempting to obtain or performing a public or private contract; (B) fraud, embezzlement, theft, bribery, forgery, falsification or destruction of records, or receiving stolen property; (C) a criminal violation of any state or federal antitrust law; (D) violation of the Racketeer Influence and Corrupt Organization Act, 18 U.S.C. §§ 1961 et seq, or the Mail Fraud Act, 18 U.S.C. §§ 1341 et seq, for acts in connection with the submission of bids or proposals for a public or private contract; (E) conspiracy to commit any act or omission that would constitute grounds for conviction or liability under any statute described in subparagraph (D) above; or (F) an offense indicating a lack of business integrity that seriously and directly affects responsibility as a City vendor; (ii) judgment of civil liability under any state or federal antitrust law for acts or omissions in connection with the submission of bids or proposals for a public or private contract; (iii) arrears on any debt or contract with the City or any agency, default as surety or otherwise upon any obligation to the City or any agency, or arrears for taxes; (iv) violation of contract provisions, as set forth below: (A) failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract, or (B) unsatisfactory performance in connection with the terms of one or more contracts; (v) an agency determination of non-responsibility or debarment by another governmental entity or public authority; (vi) violation of the provisions of Section 1304 or 1305 of the Charter or any rule promulgated pursuant thereto; (vii) making or causing to be made any false, deceptive, or fraudulent material statement in any bid, proposal, or application for City or other government work; (viii) use of unauthorized subcontractors; (ix) refusal to cooperate with reasonable requests of City inspectors and representatives with respect to work under the contract provisions, plans, or specifications; (x) improper conduct, including but not limited to, intentional or grossly negligent billing irregularities, submitting false or frivolous or exaggerated claims, falsification of documents or records, willful destruction of documents or records the vendor had an obligation to maintain, bribery, use of false or deceptive statements to obtain some benefit, causing competition to be restrained or limited, misrepresentation, falsely claiming to be a minority- or woman-owned or small business, violation of ethical standards established by the City, and other dishonesty incident to obtaining, prequalifying for, or performing any contract or modification thereof; or (xi) any other cause sufficiently serious and compelling that a reasonable person would seriously doubt the capability of the vendor to perform City procurement requirements.
(2)A vendor may also be debarred if: (i) it was founded or established, or operates in a manner designed, to evade the application or defeat the purpose of these Rules, or (ii) it is a successor, assignee, subsidiary, or affiliate of a suspended or debarred vendor.
(3)Imputed conduct.
(i)The fraudulent, criminal, or other improper conduct of any officer, director, shareholder, partner, employee, or other individual associated with a vendor may be imputed to that vendor when the conduct occurred in connection with the individual's performance of duties for or on behalf of the vendor or with the vendor's knowledge, approval, or acquiescence. The vendor's acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval, or acquiescence.
(ii)The fraudulent, criminal, or other improper conduct of a vendor may be imputed to any officer, director, shareholder, partner, employee, or other individual associated with that vendor who participated in, knew of, or had reason to know of the vendor's conduct.
(iii)The fraudulent, criminal, or other seriously improper conduct of one vendor participating in a joint venture or similar arrangement may be imputed to the other participating vendors if the conduct occurred for or on behalf of the joint venture or other similar arrangement, or with the knowledge, approval, or acquiescence of these vendors. Acceptance of the benefits derived from the conduct shall be evidence of such knowledge, approval, or acquiescence.
(c)Suspension.
(d)Hearing procedure for debarment.
(e)Scope of sanctions.
(f)Notice.
