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2 C.F.R. §§ 200.339–200.343

5 sections in range

§200.339. Remedies for noncompliance.

2 C.F.R. § 200.339

The Federal agency or pass-through entity may implement specific conditions if the recipient or subrecipient fails to comply with the U.S. Constitution, Federal statutes, regulations, or terms and conditions of the Federal award. See § 200.208 for additional information on specific conditions. When the Federal agency or pass-through entity determines that noncompliance cannot be remedied by imposing specific conditions, the Federal agency or pass-through entity may take one or more of the following actions:
(a)
Temporarily withhold payments until the recipient or subrecipient takes corrective action.
(b)
Disallow costs for all or part of the activity associated with the noncompliance of the recipient or subrecipient.
(c)
Suspend or terminate the Federal award in part or in its entirety.
(d)
Initiate suspension or debarment proceedings as authorized in 2 CFR part 180 and the Federal agency's regulations, or for pass-through entities, recommend suspension or debarment proceedings be initiated by the Federal agency.
(e)
Withhold further Federal funds (new awards or continuation funding) for the project or program.
(f)
Pursue other legally available remedies.
Notes, amendments, and revision history

Authority

Authority: 31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507.

Source

Source: 89 FR 30136, Apr. 22, 2024, unless otherwise noted.

§200.340. Termination.

2 C.F.R. § 200.340

(a)
The Federal award may be terminated in part or its entirety as follows:
(1)
By the Federal agency or pass-through entity if the recipient or subrecipient fails to comply with the terms and conditions of the Federal award;
(2)
By the Federal agency or pass-through entity with the consent of the recipient or subrecipient, in which case the two parties must agree upon the termination conditions. These conditions include the effective date and, in the case of partial termination, the portion to be terminated;
(3)
By the recipient or subrecipient upon sending the Federal agency or pass-through entity a written notification of the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal agency or pass-through entity determines that the remaining portion of the Federal award will not accomplish the purposes for which the Federal award was made, the Federal agency or pass-through entity may terminate the Federal award in its entirety; or
(4)
By the Federal agency or pass-through entity pursuant to the terms and conditions of the Federal award, including, to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.
(b)
The Federal agency or pass-through entity must clearly and unambiguously specify all termination provisions in the terms and conditions of the Federal award.
(c)
When the Federal agency terminates the Federal award prior to the end of the period of performance due to the recipient's material failure to comply with the terms and conditions of the Federal award, the Federal agency must report the termination in SAM.gov. A Federal agency must use the Contractor Performance Assessment Reporting System (CPARS) to enter information in SAM.gov.
(1)
The information required under paragraph (c) of this section is not to be reported in SAM.gov until the recipient has either:
(i)
Exhausted its opportunities to object or challenge the decision (see § 200.342); or
(ii)
Has not, within 30 calendar days after being notified of the termination, informed the Federal agency that it intends to appeal the decision to terminate.
(2)
If a Federal agency, after entering information about a termination in SAM.gov, subsequently:
(i)
Learns that any of that information is erroneous, the Federal agency must correct the information in the system within three business days;
(ii)
Obtains an update to that information that could be helpful to other Federal agencies, the Federal agency is strongly encouraged to amend the information in the system to incorporate the update in a timely way.
(3)
The Federal agency must not post any information that will be made publicly available in the non-public segment of SAM.gov that is covered by a disclosure exemption under the Freedom of Information Act (FOIA). When the recipient asserts within seven calendar days to the Federal agency which posted the information that a disclosure exemption under FOIA covers some of the information made publicly available, the Federal agency that posted the information must remove the posting within seven calendar days of receiving the assertion. Before reposting the releasable information, the Federal agency must resolve the issue in accordance with the agency's FOIA procedures.
(d)
When the Federal award is terminated in part or its entirety, the Federal agency or pass-through entity and recipient or subrecipient remain responsible for compliance with the requirements in §§ 200.344 and 200.345.
Notes, amendments, and revision history

Authority

Authority: 31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507.

Source

Source: 89 FR 30136, Apr. 22, 2024, unless otherwise noted.

§200.341. Notification of termination requirement.

2 C.F.R. § 200.341

(a)
The Federal agency or pass-through entity must provide written notice of termination to the recipient or subrecipient. The written notice of termination should include the reasons for termination, the effective date, and the portion of the Federal award to be terminated, if applicable.
(b)
If the Federal award is terminated for the recipient's material failure to comply with a Federal award, the notification must state the following:
(1)
The termination decision will be reported in SAM.gov;
(2)
The information will be available in SAM.gov for five years from the date of the termination and then archived;
(3)
Federal agencies that consider making a Federal award to the recipient during the five year period must consider this information in judging whether the recipient is qualified to receive the Federal award when the Federal share of the Federal award is expected to exceed the simplified acquisition threshold over the period of performance;
(4)
The recipient may comment on any information in SAM.gov about the recipient for future consideration by Federal agencies. The recipient may submit comments in SAM.gov.
(5)
Federal agencies should consider the recipient's comments when determining whether the recipient is qualified for a Federal award.
(c)
Upon termination of the Federal award, the Federal agency must provide the information required by the Federal Funding Accountability and Transparency Act (FFATA) to USAspending.gov. In addition, the Federal agency must update or notify any other relevant government-wide systems or entities of any indications of poor performance as required by 41 U.S.C. 2313 and 31 U.S.C. 3321.
Notes, amendments, and revision history

Authority

Authority: 31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507.

Source

Source: 89 FR 30136, Apr. 22, 2024, unless otherwise noted.

§200.342. Opportunities to object, hearings, and appeals.

2 C.F.R. § 200.342

The Federal agency must maintain written procedures for processing objections, hearings, and appeals. Upon initiating a remedy for noncompliance (for example, disallowed costs, a corrective action plan, or termination), the Federal agency must provide the recipient with an opportunity to object and provide information challenging the action. The Federal agency or pass-through entity must comply with any requirements for hearings, appeals, or other administrative proceedings to which the recipient or subrecipient is entitled under any statute or regulation applicable to the action involved.
Notes, amendments, and revision history

Authority

Authority: 31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507.

Source

Source: 89 FR 30136, Apr. 22, 2024, unless otherwise noted.

§200.343. Effects of suspension and termination.

2 C.F.R. § 200.343

Costs to the recipient or subrecipient resulting from financial obligations incurred by the recipient or subrecipient during a suspension or after the termination of a Federal award are not allowable unless the Federal agency or pass-through entity expressly authorizes them in the notice of suspension or termination or subsequently. However, costs during suspension or after termination are allowable if:
(a)
The costs result from financial obligations which were properly incurred by the recipient or subrecipient before the effective date of suspension or termination, and not in anticipation of it; and
(b)
The costs would be allowable if the Federal award was not suspended or expired normally at the end of the period of performance in which the termination takes effect.
Notes, amendments, and revision history

Authority

Authority: 31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507.

Source

Source: 89 FR 30136, Apr. 22, 2024, unless otherwise noted.