Follow the standards of awards granting to the non governmental orgs M3

(JUNE 2012)
In the event the recipient or any of its employees, subrecipients, or contractors are
found to have been convicted of a narcotics offense or to have been engaged in drug
trafficking as defined in 22 CFR 140, USAID reserves the right to terminate this award,
in whole or in part, or take any other appropriate measures including, without limitation,
refund or recall of any award amount. Additionally, the recipient must make a good-faith
effort to maintain a drug-free workplace and USAID reserves the right to terminate or
suspend this award if the recipient materially fails to do so.

a. The recipient must not transact or conduct business under this award with any
individual or entity that has an active exclusion on the System for Award
management (SAM) ( unless prior approval is received from the
Agreement Officer. The list contains those individuals and entities that the U.S.
Government has suspended or debarred based on misconduct or a
determination by the U.S. Government that the person or entity cannot be trusted
to safeguard U.S. Government funds. Suspended or debarred entities or
individuals are excluded from receiving any new work or any additional U.S.
Government funding for the duration of the exclusion period. If the recipient has
any questions about listings in the system, these must be directed to the
Agreement Officer. 

b. The recipient must comply with Subpart C of 2 CFR Section 180, as
supplemented by 2 CFR 780, USAID may disallow costs, annul or terminate the
transaction, debar or suspend the recipient, or take other remedies as
appropriate, if the recipient violates this provision. Although doing so is not
automatic, USAID may terminate this award if a recipient or any of its principals
meet any of the conditions listed in paragraph c. below. If such a situation arises,
USAID will consider the totality of circumstances—including the recipient’s
response to the situation and any additional information submitted—when USAID
Text highlighted in yellow indicates that the material is new or substantively revised.
determines its response. 

c. The recipient must notify the Agreement Officer immediately upon learning that it
or any of its principals, at any time prior to or during the duration of this award:
(1) Are presently excluded or disqualified from doing business with any U.S.
Government entity;
(2) Have been convicted or found liable within the preceding three years for
committing any offense indicating a lack of business integrity or business
honesty such as fraud, embezzlement, theft, forgery, bribery or lying;
(3) Are presently indicted for or otherwise criminally or civilly charged by any
governmental entity for any of the offenses enumerated in paragraph c.(2);
(4) Have had one or more U.S.-funded agreements terminated for cause or
default within the preceding three years.
d. Principal means—
(1) An officer, director, owner, partner, principal investigator, or other person
within a participant with management or supervisory responsibilities
related to a covered transaction; or 

(2) A consultant or other person, whether or not employed by the participant
or paid with Federal funds, who—
(i) Is in a position to handle Federal funds;
(ii) Is in a position to influence or control the use of those funds; or,
(iii) Occupies a technical or professional position capable of
substantially influencing the development or outcome of an activity
required to perform the covered transaction.
e. The recipient must include this provision in its entirety except for paragraphs
c.(2)-(4) in any subagreements, including subawards or contracts, entered into
under this award.

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