Vendor Debarment & Tax Exemption

Vendor Debarment and the Determination of Responsible Bidders

Responsible Bidders

This page provides information about vendor debarment within the State of Maine and explains how a responsible vendor is determined in the procurement process. 

Background

The term “vendor debarment” and the determination that a vendor is not a “responsible bidder” both generally refer to situations where the State of Maine decides to no longer do business with a specific vendor for a period of time. Such a decision is made on rare occasions and at the sole discretion of the State, when vendor performance or activities cause the two parties to sever their existing or potential business relationship. The decision is normally made following a hearing, when required by statute, during which the impacted vendor is able to provide its perspective on the situation at hand.

Statutory References

The following are links to State statute and departmental rules where the terms “vendor debarment” or “responsible bidder” appear (click each link for the full statutory and rule language):

18-554, Chapter 101 (Department of Administrative and Financial Services Rule Chapter)
http://www.maine.gov/sos/cec/rules/18/554/554c101.doc

39 105-A.6.B. Construction contractors (Department of Administrative and Financial Services, Bureau of General Services)
http://www.mainelegislature.org/legis/statutes/39-A/title39-Asec105-A.html

38 MRSA 349-B Debarment from department contracts (Department of Environmental Protection)
http://www.mainelegislature.org/legis/statutes/38/title38sec349-B.html

26 MRSA 1402. Debarment from state contracts (Department of Labor)
http://www.mainelegislature.org/legis/statutes/26/title26sec1402.html

Vendor Debarment and Federal Contracting

The federal government maintains a website known as the “System for Award Management” (https://www.sam.gov/SAM/), which includes a database of vendors who have been debarred from performance on federal government contracts. From here users can select "Data Access" and scroll down to "Public Search" to find the most recent lists. 

The website can be used as a reference tool both for State agencies and vendors seeking partnerships with other vendors. Please note, appearance on this website does not necessarily mean the listed vendor has been debarred in the State of Maine.

State of Maine contracts that use federal funds and are valued over $25,000 require the selected vendor to self-certify that it has not been debarred from doing business with the federal government. The vendor debarment self-certification form is found on the Division of Procurement Services website under the Forms page. The full title of the document is: “Certification Regarding Debarment, Suspension and Other Responsibility Matters Primary covered Transactions.”

State of Maine Tax Exemption Statement

The Tax Exempt Certificate is used to certify that the named organization is an agency, department, branch, or instrumentality of the federal government, the State of Maine or a political subdivision of the State of Maine, and is therefore entitled to purchase tangible personal property or taxable services that will be used exclusively by the organization for the purposes for which it is organized without payment of the Maine sales or use tax.

Please contact us for a copy of the tax exemption form that covers State of Maine government agencies and departments.

Please contact the State of Maine Bureau of Revenue Services (http://www.maine.gov/revenue/) to request a copy of any other tax or tax exemption related documentation.