[Code of Federal Regulations]

[Title 44, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 44CFR17.110]



[Page 191-192]

 

              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE

 

 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 

                                SECURITY

 

PART 17_GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND

GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)

 

                            Subpart A_General

 

Sec.  17.110  Coverage.



    (a) These regulations apply to all persons who have participated, 

are currently participating or may reasonably be expected to participate 

in transactions under Federal nonprocurement programs. For purposes of 

these regulations such transactions will be referred to as ``covered 

transactions.''

    (1) Covered transaction. For purposes of these regulations, a 

covered transaction is a primary covered transaction or a lower tier 

covered transaction. Covered transactions at any tier need not involve 

the transfer of Federal funds.

    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 

of this section, a primary covered transaction is any nonprocurement 

transaction between an agency and a person, regardless of type, 

including: grants, cooperative agreements, scholarships, fellowships, 

contracts of assistance, loans, loan guarantees, subsidies, insurance, 

payments for specified use, donation



[[Page 192]]



agreements and any other nonprocurement transactions between a Federal 

agency and a person. Primary covered transactions also include those 

transactions specially designated by the U.S. Department of Housing and 

Urban Development in such agency's regulations governing debarment and 

suspension.

    (ii) Lower tier covered transaction. A lower tier covered 

transaction is:

    (A) Any transaction between a participant and a person other than a 

procurement contract for goods or services, regardless of type, under a 

primary covered transaction.

    (B) Any procurement contract for goods or services between a 

participant and a person, regardless of type, expected to equal or 

exceed the Federal procurement small purchase threshold fixed at 10 

U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 

covered transaction.

    (C) Any procurement contract for goods or services between a 

participant and a person under a covered transaction, regardless of 

amount, under which that person will have a critical influence on or 

substantive control over that covered transaction. Such persons are:

    (1) Principal investigators.

    (2) Providers of federally-required audit services.

    (2) Exceptions. The following transactions are not covered:

    (i) Statutory entitlements or mandatory awards (but not subtier 

awards thereunder which are not themselves mandatory), including 

deposited funds insured by the Federal Government;

    (ii) 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, entities 

consisting wholly or partially of foreign governments or foreign 

governmental entities;

    (iii) 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);

    (iv) Federal employment;

    (v) Transactions pursuant to national or agency-recognized 

emergencies or disasters;

    (vi) Incidental benefits derived from ordinary governmental 

operations; and

    (vii) Other transactions where the application of these regulations 

would be prohibited by law.

    (b) Relationship to other sections. This section describes the types 

of transactions to which a debarment or suspension under the regulations 

will apply. Subpart B, ``Effect of Action,'' Sec.  17.200, ``Debarment 

or suspension,'' sets forth the consequences of a debarment or 

suspension. Those consequences would obtain only with respect to 

participants and principals in the covered transactions and activities 

described in Sec.  17.110(a). Sections 17.325, ``Scope of debarment,'' 

and 17.420, ``Scope of suspension,'' govern the extent to which a 

specific participant or organizational elements of a participant would 

be automatically included within a debarment or suspension action, and 

the conditions under which affiliates or persons associated with a 

participant may also be brought within the scope of the action.

    (c) Relationship to Federal procurement activities. In accordance 

with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 

suspension, proposed debarment or other governmentwide exclusion 

initiated under the Federal Acquisition Regulation (FAR) on or after 

August 25, 1995 shall be recognized by and effective for Executive 

Branch agencies and participants as an exclusion under this regulation. 

Similarly, any debarment, suspension or other governmentwide exclusion 

initiated under this regulation on or after August 25, 1995 shall be 

recognized by and effective for those agencies as a debarment or 

suspension under the FAR.



[53 FR 19199, and 19204, May 26, 1988, as amended at 60 FR 33041, 33061, 

June 26, 1995]