The FCC adopted a Report and Order, Direct Final Rule, and Further Notice of Proposed Rulemaking to broaden the FCC’s use of suspension and debarment. Prior to the Order, the FCC’s debarment rules applied mainly to the Universal Service Fund, but now will also address “misconduct” by program participants in the Telecommunications Relay Services program and other nonprocurement programs. The item requires FCC program participants and their executives and board members to disclose prior misconduct and prohibits dealing with entities that have been flagged for fraud by other federal agencies. The FCC’s FNPRM seeks further comment on the adoption of a compliance certification for the requirements adopted in the Report and Order and whether the new rules should extend to participants in the rip-and-replace program and future FCC programs. Overall, this proceeding could bar entities determined to have improperly use federal funds from receiving further funding from current and future FCC programs, including the 5G Fund.
