Federal agencies are more willing than ever before to suspend contractors for misconduct, issuing more than 3,000 suspensions and debarments to companies in fiscal 2011, according to a new report.

That is up more than 30 percent from 2009 -- an increase the Office of Management and Budget is attributing to the White House's efforts to cut government waste.

"In the area of contracting, this Administration has slashed billions in spending and taken aggressive steps to hold contractors accountable and ensure that we don't do business with those who seek to abuse or misuse Federal funds," Joe Jordan, administrator of OMB's Office of Federal Procurement Policy, wrote yesterday in a blog post.

The administration's focus on suspensions and debarments ramped up last year, after the Government Accountability Office released a report recommending that agencies devote more resources to suspending contractors. GAO analysts found that some agencies never suspend contractors, while others do so on a regular basis (E&E Daily, Oct. 6, 2011).

U.S. EPA is at the top of responsive agencies, earning accolades from lawmakers for its aggressiveness in weeding out bad contractors. From 2006 to 2010, it took 333 suspension and debarment actions, more per contract dollar than any other federal agency except for the Department of Housing and Urban Development (E&E Daily, Oct. 7, 2011).

In fiscal 2011, the agency issued 231 actions, according to a recent report from the Interagency Suspension and Debarment Committee (ISDC), a panel of agency representatives. The Department of Energy issued 51, while the Department of Interior issued 43.

Suspensions and debarments exclude companies that commit fraud, bribery or other violations from receiving federal contracts or assistance. Agencies can also enter administrative agreements with companies, allowing them to continue to compete for contracts if they take certain steps. They are rare; in fiscal 2011, 15 agencies entered into 46 agreements, according to the ISDC report.

The report also outlined the steps agencies have taken since the GAO report and a subsequent memorandum from OMB directing agencies to beef up their oversight of suspension and debarment. All 24 major federal agencies -- accounting for 98 percent of federal procurement spending -- now have a "senior accountable official," for example. Many have also put in place new internal monitoring programs to catch violations that may preclude a company from getting a contract.

Such actions have enabled agencies to better monitor contractors, according to OMB. In his blog post, Jordan pointed to one example from Interior: Under revamped procedures, the agency was able to quickly suspend a company after learning it was indicted in Indiana on charges of trying to bribe a state official. The company was under consideration for a contract for demolition and removal of water monitoring stations.