Federal contractors who break the rules now face the same penalties as grant recipients

The US government has made its rules for banning contractors more consistent. This means companies that get federal contracts will now be judged by the same standards as those that receive federal grants.

For years, the government had two different sets of rules for suspending or debarring companies. One set applied to contractors, and another to grant recipients. This meant a company could be banned from getting grants for bad behavior, but still be eligible for lucrative contracts. Now, the rules are aligned, closing that loophole.