Regulations last checked for updates: Nov 22, 2024

Title 31 - Money and Finance: Treasury last revised: Nov 18, 2024
Table of Contents
DOING BUSINESS WITH OTHER PERSONS

§ 19.300 - What must I do before I enter into a covered transaction with another person at the next lower tier?

§ 19.305 - May I enter into a covered transaction with an excluded or disqualified person?

§ 19.310 - What must I do if a Federal agency excludes a person with whom I am already doing business in a covered transaction?

§ 19.315 - May I use the services of an excluded person as a principal under a covered transaction?

§ 19.320 - Must I verify that principals of my covered transactions are eligible to participate?

§ 19.325 - What happens if I do business with an excluded person in a covered transaction?

§ 19.330 - What requirements must I pass down to persons at lower tiers with whom I intend to do business?

DISCLOSING INFORMATION—PRIMARY TIER PARTICIPANTS

§ 19.335 - What information must I provide before entering into a covered transaction with the Department of the Treasury?

§ 19.340 - If I disclose unfavorable information required under will I be prevented from participating in the transaction?

§ 19.345 - What happens if I fail to disclose information required under § 19.335?

§ 19.350 - What must I do if I learn of information required under after entering into a covered transaction with the Department of the Treasury?

DISCLOSING INFORMATION—LOWER TIER PARTICIPANTS

§ 19.355 - What information must I provide to a higher tier participant before entering into a covered transaction with that participant?

§ 19.360 - What happens if I fail to disclose the information required under § 19.355?

§ 19.365 - What must I do if I learn of information required under after entering into a covered transaction with a higher tier participant?

DOING BUSINESS WITH OTHER PERSONS
§ 19.300 - What must I do before I enter into a covered transaction with another person at the next lower tier?

When you enter into a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disqualified. You do this by:

(a) Checking the EPLS; or

(b) Collecting a certification from that person if allowed by this rule; or

(c) Adding a clause or condition to the covered transaction with that person.

§ 19.305 - May I enter into a covered transaction with an excluded or disqualified person?

(a) You as a participant may not enter into a covered transaction with an excluded person, unless the Department of the Treasury grants an exception under § 19.120.

(b) You may not enter into any transaction with a person who is disqualified from that transaction, unless you have obtained an exception under the disqualifying statute, Executive order, or regulation.

§ 19.310 - What must I do if a Federal agency excludes a person with whom I am already doing business in a covered transaction?

(a) You as a participant may continue covered transactions with an excluded person if the transactions were in existence when the agency excluded the person. However, you are not required to continue the transactions, and you may consider termination. You should make a decision about whether to terminate and the type of termination action, if any, only after a thorough review to ensure that the action is proper and appropriate.

(b) You may not renew or extend covered transactions (other than no-cost time extensions) with any excluded person, unless the Department of the Treasury grants an exception under § 19.120.

§ 19.315 - May I use the services of an excluded person as a principal under a covered transaction?

(a) You as a participant may continue to use the services of an excluded person as a principal under a covered transaction if you were using the services of that person in the transaction before the person was excluded. However, you are not required to continue using that person's services as a principal. You should make a decision about whether to discontinue that person's services only after a thorough review to ensure that the action is proper and appropriate.

(b) You may not begin to use the services of an excluded person as a principal under a covered transaction unless the Department of the Treasury grants an exception under § 19.120.

§ 19.320 - Must I verify that principals of my covered transactions are eligible to participate?

Yes, you as a participant are responsible for determining whether any of your principals of your covered transactions is excluded or disqualified from participating in the transaction. You may decide the method and frequency by which you do so. You may, but you are not required to, check the EPLS.

§ 19.325 - What happens if I do business with an excluded person in a covered transaction?

If as a participant you knowingly do business with an excluded person, we may disallow costs, annul or terminate the transaction, issue a stop work order, debar or suspend you, or take other remedies as appropriate.

§ 19.330 - What requirements must I pass down to persons at lower tiers with whom I intend to do business?

Before entering into a covered transaction with a participant at the next lower tier, you must require that participant to—

(a) Comply with this subpart as a condition of participation in the transaction. You may do so using any method(s), unless § 19.440 requires you to use specific methods.

(b) Pass the requirement to comply with this subpart to each person with whom the participant enters into a covered transaction at the next lower tier.

DISCLOSING INFORMATION—PRIMARY TIER PARTICIPANTS
§ 19.335 - What information must I provide before entering into a covered transaction with the Department of the Treasury?

Before you enter into a covered transaction at the primary tier, you as the participant must notify the Department of the Treasury office that is entering into the transaction with you, if you know that you or any of the principals for that covered transaction:

(a) Are presently excluded or disqualified;

(b) Have been convicted within the preceding three years of any of the offenses listed in § 19.800(a) or had a civil judgment rendered against you for one of those offenses within that time period;

(c) Are presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses listed in § 19.800(a); or

(d) Have had one or more public transactions (Federal, State, or local) terminated within the preceding three years for cause or default.

§ 19.340 - If I disclose unfavorable information required under will I be prevented from participating in the transaction?

As a primary tier participant, your disclosure of unfavorable information about yourself or a principal under § 19.335 will not necessarily cause us to deny your participation in the covered transaction. We will consider the information when we determine whether to enter into the covered transaction. We also will consider any additional information or explanation that you elect to submit with the disclosed information.

§ 19.345 - What happens if I fail to disclose information required under § 19.335?

If we later determine that you failed to disclose information under § 19.335 that you knew at the time you entered into the covered transaction, we may—

(a) Terminate the transaction for material failure to comply with the terms and conditions of the transaction; or

(b) Pursue any other available remedies, including suspension and debarment.

§ 19.350 - What must I do if I learn of information required under after entering into a covered transaction with the Department of the Treasury?

At any time after you enter into a covered transaction, you must give immediate written notice to the Department of the Treasury office with which you entered into the transaction if you learn either that—

(a) You failed to disclose information earlier, as required by § 19.335; or

(b) Due to changed circumstances, you or any of the principals for the transaction now meet any of the criteria in § 19.335.

DISCLOSING INFORMATION—LOWER TIER PARTICIPANTS
§ 19.355 - What information must I provide to a higher tier participant before entering into a covered transaction with that participant?

Before you enter into a covered transaction with a person at the next higher tier, you as a lower tier participant must notify that person if you know that you or any of the principals are presently excluded or disqualified.

§ 19.360 - What happens if I fail to disclose the information required under § 19.355?

If we later determine that you failed to tell the person at the higher tier that you were excluded or disqualified at the time you entered into the covered transaction with that person, we may pursue any available remedies, including suspension and debarment.

§ 19.365 - What must I do if I learn of information required under after entering into a covered transaction with a higher tier participant?

At any time after you enter into a lower tier covered transaction with a person at a higher tier, you must provide immediate written notice to that person if you learn either that—

(a) You failed to disclose information earlier, as required by § 19.355; or

(b) Due to changed circumstances, you or any of the principals for the transaction now meet any of the criteria in § 19.355.

authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 6101 note); E.O. 11738 (3 CFR, 1973 Comp., p. 799); E.O. 12549 (3 CFR, 1986 Comp., p. 189); E.O. 12689 (3 CFR, 1989 Comp., p. 235)
source: 68 FR 66544, 66605, 66607, Nov. 26, 2003, unless otherwise noted.
cite as: 31 CFR 19.320