{"data":{"id":"us/2-cfr-3485.220","jurisdiction":"us","citation":"2 CFR 3485.220","heading":"Are any procurement contracts included as covered transactions?","body":"(a) Covered transactions under this part—\n(1) Do not include any procurement contracts awarded directly by a Federal agency; but\n(2) Do include some procurement contracts awarded by non-Federal participants in nonprocurement covered transactions.\n(b) Specifically, a contract for goods or services is a covered transaction if any of the following applies:\n(1) The contract is awarded by a participant in a nonprocurement transaction that is covered under § 180.210 of this title, and the amount of the contract is expected to equal or exceed $25,000.\n(2) The contract requires the consent of an official of a Federal agency. In that case, the contract, regardless of the amount, always is a covered transaction, and it does not matter who awarded it. For example, it could be a subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in the Appendix to Part 3485—Covered Transactions.\n(3) The contract is for Federally-required audit services.\n(4) The contract is to perform services as a third party servicer in connection with a title IV, HEA program.\n(c) In addition to the contracts covered under 2 CFR 180.220(b) of the OMB guidance, this part applies to any contract, regardless of tier, that is awarded by a contractor, subcontractor, supplier, consultant, or its agent or representative in any transaction, if the contract is to be funded or provided by ED under a covered nonprocurement transaction and the amount of the contract is expected to equal or exceed $25,000. This extends the coverage of the ED nonprocurement suspension and debarment requirements to all lower tiers of subcontracts under covered nonprocurement transactions, as permitted under the OMB guidance at 2 CFR 180.220(c) (see optional lower tier coverage in the figure in Appendix A to Part 3485—Covered Transactions).","path":["Title 2—Federal Financial Assistance","Subtitle B—Federal Agency Regulations for Grants and Agreements","CHAPTER XXXIV—DEPARTMENT OF EDUCATION","PART 3485—NONPROCUREMENT DEBARMENT AND SUSPENSION","Subpart B—Covered Transactions"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-2.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:23:42Z","sha256":"a9e0fb6600653ad683274e540b64d66896b8392fd9d62e8516e0ddd28678c96a","source_id":"us-cfr","stale":true,"prev":"us/2-cfr-3485.137","next":"us/2-cfr-3485.310"},"notice":"GroundRules: Original legal text. Not legal advice."}