If a contractor is debarred, suspended, or proposed for debarment, what is allowed regarding contracts in existence at the time of debarment?

If a contractor is debarred, suspended, or proposed for debarment, what is allowed regarding contracts in existence at the time of debarment?

• A. Agencies may terminate all contracts immediately upon debarment.
• B. Agencies may continue contracts or subcontracts in existence at the time of debarment unless directed otherwise.
• C. Agencies may renew or extend contracts automatically after debarment.
• D. Agencies may place new orders against existing contracts.

Answer: (B)