News | March 13, 2014

EPA To Lift Suspension And Debarment Of BP From Federal Government Contracts

Agreement contains strong provisions to continue safety and ethics improvements in order to comply

The Environmental Protection Agency and BP recently executed an agreement resolving all suspension and debarment actions against BP that barred the company from doing business with the federal government following the company’s guilty plea in the Deepwater Horizon disaster of April 2010. The administrative agreement will be in place for five years.

“This is a fair agreement that requires BP to improve its practices in order to meet the terms we’ve outlined together,” said EPA Assistant Administrator of Administration and Resources Craig Hooks. “Many months of discussions and assessments have led up to this point, and I’m confident we’ve secured strong provisions to protect the integrity of federal procurement programs.”

Under the agreement, BP is required to retain an independent auditor approved by EPA who will conduct an annual review and report on BP’s compliance with the agreement. There are also specific provisions addressing ethics compliance, corporate governance, and process safety. The agreement additionally provides EPA the authority to take appropriate corrective action in the event the agreement is breached. EPA coordinated this matter with the Department of Interior, Defense Logistics Agency and U.S. Coast Guard.

Since November 2012, EPA has suspended 25 BP entities and disqualified BP Exploration and Production, Inc. from performing federal contract work at its corporate facility in Houston, Texas, stemming from its criminal conviction in the U.S. Government’s Deepwater Horizon case. Suspensions are issued where there is an immediate need to protect the public interest supported by adequate evidence.  The suspension did not affect existing agreements BP had with the government.

The agreement announced recently takes effect immediately.

SOURCE: The Environmental Protection Agency

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