CFI 100 Certifying Officer and Accountable Official Course Practice Test 2026 - Free Practice Questions and Study Guide

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Which statement best describes the consequence of debarment?

Debarment is a routine step before any contract award.

Loss of eligibility to participate in certain programs.

Debarment is a sanction that removes a person or organization from eligibility to participate in specific programs or to bid on contracts. The consequence is losing the ability to compete for or receive awards under those programs for a set period (or permanently in some cases). This protects the integrity of procurement and program funding by ensuring that entities with past misconduct or noncompliance cannot participate.

It isn’t a routine step before a contract award, nor is it a mechanism that creates an automatic promotion. It also isn’t about payroll or internal processing actions. The key point is the loss of eligibility to engage in the restricted programs or contracting opportunities.

Debarment means automatic promotion.

Debarment suspends only payroll processing.

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