5+ Contractor Red Flags in Federal Databases

Why Check Federal Databases

Federal agencies maintain public databases that track contractor violations, exclusions, and enforcement actions. These records reveal patterns that a standard reference check or license lookup will miss.

A contractor can hold a valid state license while simultaneously being:

• Debarred from federal contracts for fraud
• Cited for willful safety violations that killed workers
• Subject to hundreds of thousands in back wage orders
• Under enforcement for environmental violations

This article covers specific red flags in each major federal database and explains their severity levels to help you prioritize risk. For a complete vetting process, see our subcontractor prequalification checklist.

SAM.gov Red Flags

The System for Award Management (SAM.gov) tracks federal exclusions. Under FAR 9.405, contractors cannot receive federal contracts or subcontracts over $45,000 if they appear on this list. For a detailed explanation of how debarment works, see our SAM.gov debarment guide.

Types of Exclusions

• Debarment: Final exclusion lasting 1-3 years. Results from convictions, civil judgments, or proven misconduct.
• Suspension: Temporary exclusion (up to 12 months) while investigation is pending.
• Proposed Debarment: Under FAR, immediately excludes the party while they respond to charges.
• Voluntary Exclusion: Contractor agreed to exclusion as part of settlement.

Common Causes for Exclusion

• Fraud in connection with a public contract
• Federal or state antitrust violations
• Embezzlement, theft, forgery, or bribery
• Tax evasion
• False statements (including false "Made in America" labels)
• Davis-Bacon Act violations (prevailing wage fraud)
• Serious contract performance failures

Red Flag Severity

Any active exclusion is an immediate disqualifier. Even for non-federal projects, a SAM.gov exclusion indicates the contractor failed federal integrity standards due to fraud, criminal conduct, or serious violations. There is no acceptable scenario for awarding work to an excluded contractor.

Search both business name and individual principal names - exclusions may be recorded under DBAs or prior business names.

OSHA Red Flags

OSHA inspection records are public. You can search by establishment name at osha.gov to find citation history, violation types, and penalty amounts. For complete details on each violation type, read our OSHA violation types and penalties guide.

Willful Violations

A willful violation means the employer intentionally and knowingly violated safety standards, or acted with plain indifference to the law. Penalties range from $11,823 to $165,514 per violation (2025 amounts).

Red Flag Severity: Immediate disqualifier. Willful violations often involve deaths or serious injuries. A contractor with willful citations has demonstrated deliberate disregard for worker safety.

Repeat Violations

A repeat violation occurs when the employer was cited for a substantially similar violation within the past five years. Maximum penalty: $165,514.

Red Flag Severity: High. Repeat violations show the contractor failed to correct known hazards. This pattern suggests systemic safety problems.

Serious Violations

A serious violation exists when a hazard could cause death or serious physical harm and the employer knew or should have known about it. Maximum penalty: $16,550 per violation.

Red Flag Severity: Medium to High. A single serious violation may be acceptable with proper context. Multiple serious violations in the past three years indicate elevated risk.

Failure to Abate

Failure to abate means the employer did not correct a previously cited violation by the deadline. Penalty: up to $16,550 per day.

Red Flag Severity: High. This shows the contractor received a citation and chose not to fix the problem.

Pattern Analysis

Beyond individual citations, look for patterns. OSHA considers contractors with high-gravity serious violations in the past five years as candidates for enhanced monitoring. A contractor with 8+ inspections and repeated fall protection citations (like the New York contractor ALJ Home Improvement, which faced $687,536 in penalties after their eighth inspection) represents unacceptable risk.

GCs should understand the controlling employer doctrine - you can be cited for your subcontractor's OSHA violations even if your own employees weren't exposed to the hazard.

DOL Red Flags

The Department of Labor Wage and Hour Division (WHD) maintains enforcement records at enforcedata.dol.gov. These records show back wage orders, civil money penalties, and violation types. For a deeper dive, see our DOL back wage orders guide.

Back Wage Orders

A back wage order requires the employer to pay wages owed to workers. Common violations include:

• Overtime violations (not paying time-and-a-half for hours over 40)
• Misclassifying employees as independent contractors
• Paying piece rate without proper overtime calculation
• Falsifying time records
• Davis-Bacon prevailing wage violations (federal projects)

Red Flag Severity

• Large Back Wage Orders ($100K+): High severity. Indicates systemic wage violations affecting many workers.
• Repeat Violations: High severity. Multiple WHD enforcement actions suggest ongoing compliance failures.
• Davis-Bacon Violations: High severity for federal work. Can result in debarment and affects prime contractor liability.
• Misclassification: Medium-High severity. Common in construction but indicates potential workers' comp and tax issues.

Recent Enforcement Examples

In fiscal year 2022, the Wage and Hour Division recovered nearly $32.9 million in back wages for 17,127 construction industry workers across more than 2,200 investigations. Construction consistently ranks among the top three industries for wage violations. Recent cases include:

• $824,276 recovered from a Las Vegas drywall contractor for overtime violations (680 workers affected)
• $724,082 recovered from a Phoenix electrical contractor for falsified time records
• $594,000 recovered from a Florida construction contractor for overtime denial

EPA ECHO Red Flags

EPA's Enforcement and Compliance History Online (ECHO) at echo.epa.gov tracks environmental violations under the Clean Water Act, Clean Air Act, and Resource Conservation and Recovery Act (RCRA). For detailed guidance on using this database, see our EPA ECHO construction guide.

Construction-Relevant Violations

• Stormwater Permit Violations: Construction sites disturbing 1+ acres require NPDES permit coverage. Unpermitted discharges violate the Clean Water Act.
• SWPPP Failures: Not maintaining a Stormwater Pollution Prevention Plan or failing to implement erosion controls.
• Hazardous Waste (RCRA): Improper handling, storage, or disposal of hazardous materials (common in demolition and renovation).
• Air Quality Violations: Dust control failures, asbestos handling, or equipment emissions.

ECHO Status Indicators

• Red (High Priority Violation): Active enforcement priority
• Orange (Significant Noncompliance): Serious violation requiring attention
• Gray (Unknown/In Progress): Investigation ongoing

Red Flag Severity

• High Priority Violation Status: High severity. Active EPA enforcement indicates serious environmental problems.
• RCRA Violations: High severity. Hazardous waste mishandling carries penalties up to $70,117 per day per violation.
• Pattern of CWA Violations: Medium-High severity. Multiple stormwater violations suggest poor site management.

Severity Levels Summary

Use this framework to categorize findings and make consistent decisions:

Immediate Disqualifiers

• Any active SAM.gov exclusion
• Willful OSHA violation within past 5 years
• OSHA violation resulting in worker death (regardless of classification)
• EPA High Priority Violation status
• Davis-Bacon debarment

Elevated Risk (Require Additional Review)

• Repeat OSHA violations
• Multiple serious OSHA citations (3+ in past 3 years)
• DOL back wage orders over $100,000
• Significant Noncompliance status in EPA ECHO
• Multiple DOL enforcement actions

Monitor Closely

• Single serious OSHA violation with documented corrective action
• Smaller DOL back wage orders (under $50,000) with no pattern
• Historical EPA violations that have been resolved

SiteVetter checks all four federal databases (SAM.gov, OSHA, DOL, EPA ECHO) automatically and flags findings by severity level, saving the 45+ minutes required for manual database searches.

Related Reading

• Subcontractor Prequalification Checklist - Complete 40+ item vetting process
• CSLB License Classifications - Understand Class A, B, and C license types
• Controlling Employer Doctrine - How GCs are liable for subcontractor violations

Additional Resources

• SAM.gov Exclusions Search
• OSHA Establishment Search
• DOL Enforcement Data
• EPA ECHO