[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR34.52]



[Page 220-221]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 34_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

FOR-PROFIT ORGANIZATIONS--Table of Contents

 

                    Subpart B_Post-award Requirements

 

Sec.  34.52  Enforcement.



    (a) Remedies for noncompliance. If a recipient materially fails to 

comply with the terms and conditions of an award, whether stated in a 

Federal statute, regulation, assurance, application, or notice of award, 

the grants officer may,



[[Page 221]]



in addition to imposing any of the special conditions outlined in Sec.  

34.4, take one or more of the following actions, as appropriate in the 

circumstances:

    (1) Temporarily withhold cash payments pending correction of the 

deficiency by the recipient or more severe enforcement action by the 

grants officer and DoD Component.

    (2) Disallow (that is, deny both use of funds and any applicable 

matching credit for) all or part of the cost of the activity or action 

not in compliance.

    (3) Wholly or partly suspend or terminate the current award. In the 

case of termination, the recipient will be reimbursed for allowable 

costs incurred prior to termination, with the possible exception of 

those for activities and actions described in paragraph (a)(2) of this 

section.

    (4) Withhold further awards for the project or program.

    (5) Take other remedies that may be legally available.

    (b) Hearings and appeals. In taking an enforcement action, the 

grants officer and DoD Component shall provide the recipient an 

opportunity for hearing, appeal, or other administrative proceeding to 

which the recipient is entitled under any statute or regulation 

applicable to the action involved (see Sec.  34.53 and 32 CFR 22.815).

    (c) Effects of suspension and termination. Costs of a recipient 

resulting from obligations incurred by the recipient during a suspension 

or after termination of an award are not allowable unless the grants 

officer expressly authorizes them in the notice of suspension or 

termination or subsequently. Other recipient costs during suspension or 

after termination which are necessary and not reasonably avoidable are 

allowable if the costs:

    (1) Result from obligations which were properly incurred by the 

recipient before the effective date of suspension or termination, are 

not in anticipation of it, and in the case of a termination, are 

noncancellable; and

    (2) Would be allowable if the award were not suspended or expired 

normally at the end of the funding period in which the termination takes 

effect.

    (d) Relationship to debarment and suspension. The enforcement 

remedies identified in this section, including suspension and 

termination, do not preclude a recipient from being subject to debarment 

and suspension under 32 CFR part 25.