1. (1) Disqualification. The department may disqualify a person from an award of department contracts for up to three years if:

   1. (a) Contract Performance: The person has performed unsatisfactorily under a contract or has committed a material breach of a contract.
   2. (b) Contract Offense Conviction: The person has been convicted of a criminal offense resulting from obtaining, or attempting to obtain, a public or private contract or subcontract, or resulting from the performance of such contract or subcontract.
   3. (c) Business Offense Conviction: The person has been convicted under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property or any other offense indicating a lack of business integrity or business honesty that currently, seriously and directly affects the person’s responsibility as a contractor or the department determines may affect the fairness, integrity, honesty, or security of the department.
   4. (d) Antitrust Conviction: The person has been convicted under state or federal antitrust statutes.
   5. (e) Workers’ Compensation or Employment Statute Violation: The person does not carry worker’s compensation or unemployment insurance as required by statute.
   6. (f) Other: The department may attribute improper conduct of an individual or entity or its affiliate or affiliates having a contract with a person to the person for purposes of suspension determinations where the impropriety occurred in connection with the individual’s or entity’s duty for, on behalf of, or with the knowledge, approval, or acquiescence of, the person.
2. (2) Notice. The department will provide written notice to a person suspended by the department.

3. (3) Disqualification Protest Opportunity: Any person who receives a disqualification notice from the department may submit a written protest of the notice to the designated procurement officer within the later of five days following the date of the disqualification notice or the date specified in the disqualification notice.

   1. (a) Disqualification Protest Content: All disqualification protests must be in writing and signed either in writing or electronic form by the person’s authorized representative. The disqualification protest must state all facts and arguments upon which the person is basing the protest.

   2. (b) OPRD’s Response: The designated procurement officer will review each timely-submitted disqualification protest and will issue a written response to the person within three business days following receipt of the protest.

      1. (A) Response Content: The department’s written response may include the designated procurement officer's decision affirming or denying the disqualification protest, a notice to the person that the department needs additional time to evaluate the protest, or a request for additional information the department may need to evaluate the protest.
      2. (B) Follow-up Response: The department will issue a follow-up response to the person within a reasonable time following notice to the person that the department needs additional time to evaluate the disqualification protest or following receipt of the additional information requested from the person.
4. (4) Disqualification Effective Date: A person’s disqualification is effective when the person’s rights to protest the disqualification are exhausted.

Statutory/Other Authority

ORS 279.025(3)(k)

Statutes/Other Implemented

ORS 279.025(3)(k)

History

PRD 2-2026, temporary adopt filed 04/23/2026, effective 04/24/2026 through 10/19/2026