BP temporarily suspended from new contracts with federal government

Published On: Nov 28 2012 08:36:08 AM CST   Updated On: Nov 28 2012 08:39:09 AM CST
BP oil spill, Deepwater Horizon fire
HOUSTON -

The U.S. Environmental Protection Agency announced Wednesday that it has temporarily suspended BP Exploration and Production, Inc., BP PLC and affiliated companies (BP) from new contracts with the federal government.

Officials said the EPA is taking this action due to BP's lack of business integrity as demonstrated by the company's conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response, as reflected by the filing of a criminal information.

On Nov. 15, 2012, BP agreed to plead guilty to 11 counts of misconduct or neglect of ship officers, one count of obstruction of congress, one misdemeanor count of a violation of the Clean Water Act, and one misdemeanor count of a violation of the Migratory Bird Treaty Act, all arising from its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history.

For the Deepwater Horizon investigation, the EPA was designated as the lead agency for suspension and debarment actions. Federal executive branch agencies take these actions to ensure the integrity of federal programs by conducting business only with responsible individuals or companies. Suspensions are a standard practice when a responsibility question is raised by action in a criminal case.

The BP suspension will temporarily prevent the company and the named affiliates from getting new federal government contracts, grants or other covered transactions until the company can provide sufficient evidence to EPA demonstrating that it meets Federal business standards.

The suspension does not affect existing agreements BP may have with the government.