§ 200.206 - Federal agency review of risk posed by applicants.

§ 200.206 Federal awarding agency review of risk posed by applicants.

(a) Review of OMB-designated repositories of governmentwide government-wide data.

(1) Prior to making a Federal award, the Federal awarding agency is required by to review eligibility information for applicants and financial integrity information for applicants available in OMB-designated databases per the Payment Integrity Information Act of 2019 (Pub. L. 116-117), the “Do Not Pay Initiative” (31 U.S.C. 3301 note3354), and 41 U.S.C. 2313 to review information available through any OMB-designated repositories of governmentwide eligibility qualification or financial integrity information as appropriate. See also suspension and debarment requirements at 2 CFR part 180 as well as individual Federal agency suspension and debarment regulations in title 2 of the Code of Federal Regulations.

(2) In accordance 41 U.S.C. 2313, the Federal awarding The Federal agency is required to review the responsibility and qualification records available in the non-public segment of the OMB-designated integrity and performance system accessible through SAM (currently the Federal Awardee Performance and Integrity Information System (FAPIIS)) System for Award Management (SAM.gov) prior to making a Federal award where the Federal share is expected to exceed the simplified acquisition threshold, defined in at 41 U.S.C. 134, over the period of performance. As required by Public Law 112-239, National Defense Authorization Act for Fiscal Year 2013, prior to making a Federal award, the Federal awarding See 41 U.S.C. 2313. The Federal agency must consider all of the information available through FAPIIS in SAM.gov with regard to the applicant and any immediate highest-level owner, predecessor (i.e.; a non-Federal entity meaning, an organization that is replaced by a successor), or subsidiary, identified for that applicant in FAPIIS, if applicable. At a minimum, the SAM.gov. See Public Law 112-239, National Defense Authorization Act for Fiscal Year 2013; 41 U.S.C. 2313(d). The information in the system for a prior recipient of a Federal award recipient must demonstrate a satisfactory record of executing administering programs or activities under Federal grants, cooperative agreements, financial assistance or procurement awards; , and integrity and business ethics. The Federal awarding agency may make a Federal award to a recipient who that does not fully meet these standards , if it is determined that the information is not relevant to the current Federal award under consideration or there are specific conditions that can appropriately mitigate the effects of the non-Federal entity's risk risk associated with the recipient in accordance with § 200.208.

(b) Risk evaluationAssessment.

(1) The Federal awarding agency must have in place a framework for evaluating establish and maintain policies and procedures for conducting a risk assessment to evaluate the risks posed by applicants before they receive issuing Federal awards. This evaluation may incorporate results of the evaluation of the applicant's eligibility or the quality of its applicationassessment helps identify risks that may affect the advancement toward or the achievement of a project's goals and objectives. Risk assessments assist Federal managers in determining appropriate resources and time to devote to project oversight and monitor recipient progress. This assessment may incorporate elements such as the quality of the application, award amount, risk associated with the program, cybersecurity risks, fraud risks, and impacts on local jobs and the community. If the Federal awarding agency determines that a the Federal award will be made, special specific conditions that correspond to address the degree of assessed risk assessed may be applied to implemented in the Federal award. Criteria The risk criteria to be evaluated must be described in the announcement of the funding opportunity described in § 200.204.

(2) In evaluating risks posed by applicants, the Federal awarding agency may use a risk-based approach and may consider any items such as agency should consider the following items:

(i) Financial stability. Financial stability The applicant's record of effectively managing financial risks, assets, and resources;

(ii) Management systems and standards. Quality of management systems and ability to meet the management standards prescribed in this part;

(iii) History of performance. The applicant's record in of managing previous and current Federal awards, if it is a prior recipient of Federal awards, including timeliness of compliance with applicable reporting requirements , and conformance to the terms and conditions of previous Federal awards, and if applicable, the extent to which any previously awarded amounts will be expended prior to future awards;

(iv) Audit reports and findings. Reports and findings from audits performed under subpart F of this part or the reports and findings of any other available audits, if applicable; and

(v) Ability to effectively implement requirements. The applicant's ability to effectively implement statutory, regulatory, or other requirements imposed on non-recipients of Federal entitiesawards.

(c) Risk-based requirements adjustmentAdjustments to the Risk Assessment. The Federal awarding agency may adjust requirements when a risk-evaluation indicates that it may be merited either pre-award or post-award.modify the risk assessment at any time during the period of performance, which may justify changes to the terms and conditions of the Federal award. See § 200.208.

(d) Suspension and debarment compliance.

(1)

The Federal

awarding

agency must comply with the

guidelines on governmentwide

government-wide suspension and debarment guidance in 2 CFR part 180

, and must require non-Federal entities

and individual Federal agency suspension and debarment requirements in title 2 of the Code of Federal Regulations. Federal agencies must also require recipients to comply with these

provisions

requirements. These

provisions

requirements restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from

or ineligible for participation

receiving Federal awards or participating in Federal

programs or activities.

[85 FR 49539, Aug. 13, 2020, as amended at 86 FR 10439, Feb. 22, 2021]

awards.