---
kind: "section"
citation: "45 C.F.R. § 1631.6"
title: "45"
number: "1631.6"
heading: "Characteristics of procurements."
url: "https://uscodex.org/cfr/45/1631.6"
---

# §1631.6. Characteristics of procurements.

- (a) Characteristics indicative of a procurement relationship between a recipient and another entity are when the other entity:
  - (1) Provides the goods and services within its normal business operations;
  - (2) Provides similar goods or services to many different purchasers;
  - (3) Normally operates in a competitive environment;
  - (4) Provides goods or services that are ancillary to the operation of the LSC grant; and
  - (5) Is not subject to LSC's compliance requirements as a result of the agreement, though similar requirements may apply for other reasons.
- (b) In determining whether an agreement between a recipient and another entity constitutes a contract under this part or a subgrant under [part 1627](/cfr/45/part1627.md) of this chapter, the substance of the relationship is more important than the form of the agreement. All the characteristics above may not be present in all cases, and a recipient must use judgment in classifying each agreement as a subgrant or a contract.

## Notes

### Authority

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

### Source

Source: 82 FR 37341, Aug. 10, 2017, unless otherwise noted.