Code of Federal Regulations Title 2. Grants and Agreements 2 CFR Pt. 1138, App. K—TERMS AND CONDITIONS FOR SUB ARTICLE XI, “REQUIREMENTS CONCERNING SUBRECIPIENTS' LOWER–TIER SUBAWARDS”

Unless modified as provided in § 1138.5, a DoD Component's general terms and conditions must use the following wording for SUB Article XI.

SUB ArticleXI. Requirements Concerning Subrecipients' Lower–Tier Subawards. (DECEMBER 2014)

Section A. Purpose. This article specifies requirements you must include in any cost-type subaward under which you determine that the subrecipient of your subaward may make lower-tier cost-type subawards to other entities. Paragraph G.1 of SUB Article XII specifies requirements related to fixed-amount type subawards at lower tiers.

Section B. Requirements for lower-tier subawards. Your cost-type subaward terms and conditions must require your subrecipient, with respect to each lower-tier cost-type subaward that it makes, to:

1. Ensure that the lower-tier transaction is a subaward, rather than a procurement, by making the determination that SUB Article I of this award requires you to make for your subawards.

2. Conduct the pre-award risk assessment of its intended subrecipient that Section B of SUB Article II of this award requires you to make for your subawards.

3. Include in any cost-type subaward it makes at the next tier:

a. The informational content that SUB Article III specifies;

b. The administrative requirements that SUB Articles IV through VIII of this award specify;

c. The national policy requirements that SUB Article IX of this award specifies, as applicable;  and

d. The requirements of this article if the next-tier subrecipient may make even lower-tier cost-type subawards to other entities.

4. Carry out the subrecipient monitoring and other post-award administration responsibilities specified in SUB Article X of this award.