Link to an amendment published at 85 FR 51244, Aug. 19, 2020.

(a) This part prescribes administrative requirements for awards to for-profit organizations.

Terms Used In 32 CFR 34.1

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Award: A grant or a cooperative agreement other than a technology investment agreement (TIA). See 32 CFR 34.2
  • DoD Component: A Military Department, Defense Agency, DoD Field Activity, or organization within the Office of the Secretary of Defense that provides or administers an award to a recipient. See 32 CFR 34.2
  • Statute: A law passed by a legislature.
  • Subaward: Financial assistance in the form of money, or property in lieu of money, provided under an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient. See 32 CFR 34.2
  • Subrecipient: The legal entity to which a subaward is made and which is accountable to the recipient for the use of the funds provided. See 32 CFR 34.2

(b) Applicability to prime awards and subawards is as follows:

(1) Prime awards. DoD Components shall apply the provisions of this part to awards to for-profit organizations. DoD Components shall not impose requirements that are in addition to, or inconsistent with, the requirements provided in this part, except:

(i) In accordance with the deviation procedures or special award conditions in §34.3 or §34.4, respectively; or

(ii) As required by Federal statute, Executive order, or Federal regulation implementing a statute or Executive order.

(2) Subawards. (i) Any legal entity (including any State, local government, university or other nonprofit organization, as well as any for-profit entity) that receives an award from a DoD Component shall apply the provisions of this part to subawards with for-profit organizations. It should be noted that subawards (see definition in §34.2) are financial assistance for substantive programmatic performance and do not include recipients’ procurement of goods and services.

(ii) For-profit organizations that receive prime awards covered by this part shall apply to each subaward the administrative requirements that are applicable to the particular type of subrecipient (e.g., 32 CFR part 33 specifies requirements for subrecipients that are States or local governments, and 32 CFR part 32 contains requirements for universities or other nonprofit organizations).