[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR85.200]

[Page 255-256]
 
                           TITLE 34--EDUCATION
 
PART 85--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND 
GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of 
Contents
 
                       Subpart B--Effect of Action
 
Sec. 85.200  Debarment or suspension.


    (a) Primary covered transactions. Except to the extent prohibited by 
law and subject to Sec. 85.201, Treatment of title IV HEA participation, 
persons who are debarred or suspended shall be excluded from primary 
covered transactions as either participants or principals throughout the 
executive branch of the Federal Government for the period of their 
debarment, suspension or the period they are proposed for debarment 
under 48 CFR part 9, subpart 9.4. Accordingly, ED shall not enter into 
primary covered transactions with such excluded persons during such 
period, except as permitted pursuant to Sec. 85.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law and subject to Sec. 85.201, Treatment of title IV HEA 
participation, persons who have been proposed for debarment under 48 CFR 
part 9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 85.110(a)(1)(ii)) for the period of their 
exclusion. Such persons shall also be excluded from all contracts to 
provide federally-required audit services, regardless of contract 
amount.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;

[[Page 256]]

    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.

(Authority: E.O.s 12549 and 12689; 20 U.S.C. 1082, 1094, 1221e-3 and 
3474; and sec. 2455, Pub. L. 103-355, 108 Stat. 3243 at 3327)

[60 FR 33041, 33056, June 26, 1995]