§ 58.406. Denial or decertification of small business, small diverse business or veteran business enterprise status.
(a) The Department will deny or decertify businesses from certified SB status or verified SDB or VBE status, or all of those statuses, for any the following reasons:
(1) The business received certification by knowingly submitting false and misleading information.
(2) The business knowingly allowed the misuse of its certification status.
(3) The business failed to cooperate with or respond to a request for information from the Department or another Commonwealth agency or official.
(4) The alternate certifying entity decertifies the business.
(5) The Department issues a written notice of default or notice of termination, or both, under the terms and conditions of a contract issued as the result of an SBR procurement.
(6) For any other good cause as determined by the Department.
(b) The Department reserves the right to consider other causes that impact business status to be sufficient to warrant decertification.
(c) By certified mail, the Department will send the business a Notice of Proposal to Deny or Decertify that includes all of the following:
(1) Specifies the reasons for the proposed denial or decertification in terms that will place the business on notice of the conduct or transactions upon which the notice is based.
(2) States the grounds relied upon under subsection (a) for proposing denial or decertification.
(3) Advises that, within 20 calendar days after receipt of the Notice of Proposal to Deny or Decertify, the business may submit in person, in writing, or through a representative, information in opposition to the proposed decertification, including information that raises a genuine dispute over the material facts.
(4) States the potential effect of the proposed decertification.
(5) Advises that the Secretary or a designee will make this decision.
(d) If the business is in fact decertified, the decision letter will also inform the decertified business of its rights of review.
(e) If the actions of the business are the subject of an indictment, information or other criminal charge, the Department may temporarily suspend the certification until the determination is made to decertify or reinstate. A review of this temporary suspension may be made by the Secretary or a designee.
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