BP Temporarily Suspended From Winning New Contracts With The Federal Government

The Environmental Protection Agency (“EPA”) has temporarily suspended BP from winning new contracts with the federal government.  The decision comes less than two weeks after BP pled guilty to criminal charges and agreed to pay a record $4.5 billion in fines and other fees for the April 2010 drilling disaster in the Gulf of Mexico as discussed in a White-Collared post on November 17th. According to an EPA News Release, the suspension is the result of 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.” The Release stated that the suspension will remain in place until the company provides sufficient evidence that it meets “federal business standards.”

In a statement released after the announcement, BP stressed that the suspension does not affect any existing contracts that the company has with the U.S. government.  The company further made clear that it expects the suspension to be lifted soon.  According to BP, it has been in regular communication with the EPA in an effort to establish its qualifications to conduct business with the government. The EPA has informed BP that “it is preparing a proposed administrative agreement that, if agreed upon, would effectively resolve and lift this temporary suspension.”