(a) Investigation and referral.
When the contracting officer becomes aware of a situation that requires investigation under FAR Subpart 9.4, he/she must contact the local Procurement Fraud Advisor (PFA) who will send a Procurement Flash Report in accordance with paragraph 8-5 of Army Regulation (AR) 27-40 when there is a reasonable suspicion of procurement fraud or irregularity or the procuring agency refers the matter for investigation. The contracting officer must provide information to the PFA for the Procurement Flash Report as required.
(i) Contracting officer reports must be sent through the HCA or designee to the PFA for review. Prompt reporting is essential in all cases which could lead to suspension or debarment of a contractor or to judicial or administrative action against military personnel or civilian employees of the Army.
(ii) The report must include contractor credit and financial information, such as Dunn and Bradstreet reports. When the report recommends suspension or debarment because of contractor fraud or criminal conduct involving a current contract, withhold all funds which become due the contractor on that contract, unless the HCA or the debarring official directs otherwise. Follow the procedures in FAR 32.006-4 when a contractor’s request for advance, partial, or progress payments is based on fraud.
(iii) Distribute reports to the debarring official through the Procurement Fraud Branch (PFB) as follows: Forward the original and one copy through contracting channels to the PFB, and send the second copy directly to the PFB.
[AFARS Revision #21, dated May 22, 2007]
