(1) If the department accepts a debarment referral and conducts an investigation, the department will notify the contractor and affiliates in writing.

(2) The notice must:

(a) Provide a complete copy of the debarment referral;

(b) State the applicable cause(s) for debarment or fine in lieu of debarment, including the applicable statutory or administrative code provisions, and the factual allegations supporting each cause in terms sufficient to put the contractor and affiliates on notice of the specific reasons for the investigation;

(c) Request a written response to the allegations including any documents that support the response, and state that failure to respond will result in the department making a decision without the recipient's input; and

(d) State the effects of a debarment order or fine in lieu of debarment order.

(3) At the conclusion of the investigation, the investigating official will issue a report that includes the following information:

(a) Facts found by the investigating official;

(b) Whether the facts support debarment or a fine in lieu of debarment; and

(c) A recommendation. The recommendation shall state whether the referral should be dismissed with no further action taken or whether a debarment order or fine in lieu of debarment should be issued, including the duration of the debarment or the amount of the fine in lieu of debarment.