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Code of Federal Regulations Title 2. Grants and Agreements § 2.3485.220 Are any procurement contracts included as covered transactions?

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) Covered transactions under this part—

(1) Do not include any procurement contracts awarded directly by a Federal agency;  but

(2) Do include some procurement contracts awarded by non–Federal participants in nonprocurement covered transactions.

(b) Specifically, a contract for goods or services is a covered transaction if any of the following applies:

(1) The contract is awarded by a participant in a nonprocurement transaction that is covered under § 180.210 of this title, and the amount of the contract is expected to equal or exceed $25,000.

(2) The contract requires the consent of an official of a Federal agency. In that case, the contract, regardless of the amount, always is a covered transaction, and it does not matter who awarded it. For example, it could be a subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in the Appendix to Part 3485—Covered Transactions.

(3) The contract is for Federally-required audit services.

(4) The contract is to perform services as a third party servicer in connection with a title IV, HEA program.

(c) In addition to the contracts covered under 2 CFR 180.220(b) of the OMB guidance, this part applies to any contract, regardless of tier, that is awarded by a contractor, subcontractor, supplier, consultant, or its agent or representative in any transaction, if the contract is to be funded or provided by ED under a covered nonprocurement transaction and the amount of the contract is expected to equal or exceed $25,000. This extends the coverage of the ED nonprocurement suspension and debarment requirements to all lower tiers of subcontracts under covered nonprocurement transactions, as permitted under the OMB guidance at 2 CFR 180.220(c) (see optional lower tier coverage in the figure in Appendix A to Part 3485—Covered Transactions).

(Authority:  E.O. 12549 (3 CFR 1986 Comp., p. 189);  E.O. 12689 (3 CFR 1989 Comp., p. 235);  sec. 2455, Pub.L. 103–355, 108 Stat. 3327 (31 U.S.C. 6101 note);  20 U.S.C. 1082, 1094, 1221e–3, and 3474)

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Cite this article: FindLaw.com - Code of Federal Regulations Title 2. Grants and Agreements § 2.3485.220 Are any procurement contracts included as covered transactions? - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-2-grants-and-agreements/cfr-sect-2-3485-220/

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