---
kind: "section"
citation: "45 C.F.R. § 1627.3"
title: "45"
number: "1627.3"
heading: "Characteristics of subgrants."
url: "https://uscodex.org/cfr/45/1627.3"
---

# §1627.3. Characteristics of subgrants.

- (a) In determining whether an agreement between a recipient and another entity should be considered a subgrant or a procurement contract, the substance of the relationship is more important than the form of the agreement. All of the characteristics listed in [paragraph (b)](#b) of this section may not be present in all cases, and the recipient must use judgment in classifying each agreement as a subgrant or a procurement contract. The recipient must make case-by-case determinations whether each agreement that it makes with another entity constitutes a subgrant or a procurement contract.
- (b) Characteristics that support the classification of the agreement as a subgrant include when the other entity:
  - (1) Determines who is eligible to receive legal assistance under the recipient's LSC grant;
  - (2) Has its performance measured in relation to whether objectives of the LSC grant were met;
  - (3) Has responsibility for programmatic decision-making regarding the delivery of legal assistance under the recipient's LSC grant;
  - (4) Is responsible for adherence to applicable LSC program requirements specified in the LSC grant award; and
  - (5) In accordance with its agreement, uses the LSC funds or property or services acquired in whole or in part with LSC funds, to carry out a program for a public purpose specified in LSC's governing statutes and regulations, as opposed to providing goods or services for the benefit of the recipient.

## Notes

### Authority

Authority: 42 U.S.C. 2996g(e).

### Source

Source: 82 FR 10283, Feb. 10, 2017, unless otherwise noted.