Freya, a government contractor, has been convicted of colluding with other contractors to manipulate the...

According to the ACFE Fraud Examiners Manual, Law Section, particularly in discussions related to public corruption and remedies in criminal and administrative proceedings , debarment is an administrative sanction that prohibits an individual or entity from participating in government contracts or programs for a specified period of time. Debarment is commonly imposed after convictions involving fraud, bribery, collusion, or other misconduct affecting the integrity of the procurement process.

In this case, Freya was convicted of colluding to manipulate the competitive bidding process. As a result, she was placed on a list prohibiting her from bidding on government contracts for five years. This exclusion from government contracting is the defining characteristic of debarment. The purpose of debarment is not merely punitive but also protective—it safeguards public funds and ensures that only responsible and ethical contractors conduct business with the government.

License revocation or suspension would involve withdrawing or temporarily removing a professional or business license. Disenfranchisement refers to the loss of voting rights. Neither accurately describes exclusion from government contracting opportunities.

Therefore, the administrative penalty imposed on Freya is best described as debarment.