Purpose.

§ 34.1 Purpose. (a) This part prescribes administrative requirements for awards to for-profit organizations. (b) Applicability to prime awards and subawards is as follows: (1) Prime awards. DoD Components shall apply the provisions of this part to awards to for-profit organizations. DoD Components shall not impose requirements that are in addition to, or inconsistent with, the requirements provided in this part, except: (i) In accordance with the deviation procedures or special award conditions in § 34.3 or § 34.4, respectively; or (ii) As required by Federal statute, Executive order, or Federal regulation implementing a statute or Executive order. (2) Subawards. (i) Any legal entity (including any State, local government, university or other nonprofit organization, as well as any for-profit entity) that receives an award from a DoD Component shall apply the provisions of this part to subawards with for-profit organizations. It should be noted that subawards (see definition in § 34.2) are financial assistance for substantive programmatic performance and do not include recipients' procurement of goods and services. (ii) For-profit organizations that receive prime awards covered by this part shall apply to each subaward the administrative requirements that are applicable to the particular type of subrecipient. [63 FR 12204, Mar. 12, 1998, as amended at 85 FR 51244, Aug. 19, 2020]