---
kind: "section"
citation: "2 C.F.R. § 1402.206"
title: "2"
number: "1402.206"
heading: "What are the FAIR requirements for domestic for-profit entities?"
url: "https://uscodex.org/cfr/2/1402.206"
---

# §1402.206. What are the FAIR requirements for domestic for-profit entities?

- (a) **Requirements for domestic for-profit entities.**
  - (1) [Section 1402.207(a)](/cfr/2/1402.207.md?p=a) contains standard award terms and conditions that always apply to for-profit entities and [§ 1402.207(b)](/cfr/2/1402.207.md?p=b) contains terms that apply to sub-awards or contracts with for-profit entities over the simplified acquisition threshold. Bureaus and offices must incorporate into awards to domestic for-profit organizations the award terms and conditions that always apply, either directly or by reference.
  - (2) Bureaus and offices may apply the administrative guidelines in subparts [A](/cfr/2/subpartA.md) through [D](/cfr/2/subpartD.md) of [2 CFR part 200](/cfr/2/part200.md), the cost principles at [48 CFR part 31](/cfr/48/part31.md), [subpart 31.2](/cfr/2/subpart31.2.md), and the procedures for negotiating indirect costs (detailed in [§ 1402.414](/cfr/2/1402.414.md)) to domestic for-profit entities.
  - (3) Depending on the nature of a particular program, offices and bureaus may additionally develop program-specific administrative guidelines for domestic for-profits based on the requirements in [2 CFR part 200](/cfr/2/part200.md), subparts [A](/cfr/2/subpartA.md) through [D](/cfr/2/subpartD.md), but may not apply more restrictive requirements than the requirements in [2 CFR part 200](/cfr/2/part200.md), subparts [A](/cfr/2/subpartA.md) through [D](/cfr/2/subpartD.md), unless approved by OMB through a request to the Director, Office of Grants Management.
- (b) **Requirements for award terms and conditions.** Bureau and office award terms and conditions must be managed in accordance with the requirements in [2 CFR 200.211](/cfr/2/200.211.md), Information contained in a Federal award.

## Notes

### Amendments

[84 FR 45635, Aug. 30, 2019, as amended at 86 FR 57531, Oct. 18, 2021]

### Authority

Authority: 5 U.S.C. 301 and 2 CFR part 200.

### Source

Source: 84 FR 45635, Aug. 30, 2019, unless otherwise noted.

### Amendments

[84 FR 45635, Aug. 30, 2019, as amended at 86 FR 57531, Oct. 18, 2021]