Unless modified as provided in § 1138.5, a DoD Component's general terms and conditions must use the following wording for SUB Article XI.
SUB Article XI. Requirements Concerning Subrecipients' Lower-Tier Subawards. (DECEMBER 2014)
Section A. Purpose. This article specifies requirements you must include in any cost-type subaward under which you determine that the subrecipient of your subaward may make lower-tier cost-type subawards to other entities. Paragraph G.1 of SUB Article XII specifies requirements related to fixed-amount type subawards at lower tiers.
Section B. Requirements for lower-tier subawards. Your cost-type subaward terms and conditions must require your subrecipient, with respect to each lower-tier cost-type subaward that it makes, to:
1. Ensure that the lower-tier transaction is a subaward, rather than a procurement, by making the determination that SUB Article I of this award requires you to make for your subawards.
2. Conduct the pre-award risk assessment of its intended subrecipient that Section B of SUB Article II of this award requires you to make for your subawards.
3. Include in any cost-type subaward it makes at the next tier:
a. The informational content that SUB Article III specifies;
b. The administrative requirements that SUB Articles IV through VIII of this award specify;
c. The national policy requirements that SUB Article IX of this award specifies, as applicable; and
d. The requirements of this article if the next-tier subrecipient may make even lower-tier cost-type subawards to other entities.
4. Carry out the subrecipient monitoring and other post-award administration responsibilities specified in SUB Article X of this award.