15 C.F.R. Subpart B—Covered Transactions
Title 15 - Commerce and Foreign Trade
A covered transaction is a nonprocurement or procurement transaction that is subject to the prohibitions of this part. It may be a transaction at— (a) The primary tier, between a Federal agency and a person (see appendix to this part); or (b) A lower tier, between a participant in a covered transaction and another person. The importance of a covered transaction depends upon who you are. (a) As a participant in the transaction, you have the responsibilities laid out in Subpart C of this part. Those include responsibilities to the person or Federal agency at the next higher tier from whom you received the transaction, if any. They also include responsibilities if you subsequently enter into other covered transactions with persons at the next lower tier. (b) As a Federal official who enters into a primary tier transaction, you have the responsibilities laid out in subpart D of this part. (c) As an excluded person, you may not be a participant or principal in the transaction unless— (1) The person who entered into the transaction with you allows you to continue your involvement in a transaction that predates your exclusion, as permitted under §26.310 or §26.415; or (2) A(n) DoC official obtains an exception from the Secretary of Commerce or designee to allow you to be involved in the transaction, as permitted under §26.120. All nonprocurement transactions, as defined in §26.970, are covered transactions unless listed in §26.215. (See appendix to this part.) The following types of nonprocurement transactions are not covered transactions: (a) A direct award to— (1) A foreign government or foreign governmental entity; (2) A public international organization; (3) An entity owned (in whole or in part) or controlled by a foreign government; or (4) Any other entity consisting wholly or partially of one or more foreign governments or foreign governmental entities. (b) A benefit to an individual as a personal entitlement without regard to the individual's present responsibility (but benefits received in an individual's business capacity are not excepted). For example, if a person receives social security benefits under the Supplemental Security Income provisions of the Social Security Act, 42 U.S.C. 1301 et seq., those benefits are not covered transactions and, therefore, are not affected if the person is excluded. (c) Federal employment. (d) A transaction that the Department of Commerce needs to respond to a national or agency-recognized emergency or disaster. (1) For the purposes of the DoC this means: (i) Fisherman's Contingency Fund. (ii) [Reserved] (2) [Reserved] (e) A permit, license, certificate, or similar instrument issued as a means to regulate public health, safety, or the environment, unless the Department of Commerce specifically designates it to be a covered transaction. (f) An incidental benefit that results from ordinary governmental operations. (1) For purposes of the DoC this means: (i) Export Promotion, Trade Information and Counseling, and Trade Policy. (ii) Geodetic Surveys and Services (Specialized Services). (iii) Fishery Products Inspection Certification. (iv) Standard Reference Materials. (v) Calibration, Measurement and Testing. (vi) Critically Evaluated Data (Standard Reference Data). (vii) Phoenix Data System. (viii) The sale or provision of products, information, and services to the general public. (2) [Reserved] (g) Any other transaction if the application of an exclusion to the transaction is prohibited by law. (1) For purposes of the DoC this means: (i) The Administration of the Antidumping and Countervailing Duty Statutes. (ii) The Export Trading Company Act Certificate of Review Program. (iii) Trade Adjustment Assistance Program Certification. (iv) Foreign Trade Zones Act of 1934, as amended. (v) Statutory Import Program. (2) [Reserved] [68 FR 66544, 66575, 66577, Nov. 26, 2003] (a) Covered transactions under this part— (1) Do not include any procurement contracts awarded directly by a Federal agency; but (2) Do include some procurement contracts awarded by non-Federal participants in nonprocurement covered transactions (see appendix to this part). (b) Specifically, a contract for goods or services is a covered transaction if any of the following applies: (1) The contract is awarded by a participant in a nonprocurement transaction that is covered under §26.210, and the amount of the contract is expected to equal or exceed $25,000. (2) The contract requires the consent of a(n) DoC official. 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 this part. (3) The contract is for federally-required audit services. (c) The contract is a subcontract awarded by a participant in a procurement transaction that is covered under paragraph (a) of this section, and the amount of the contract exceeds or is expected to exceed $25,000. This extends the coverage of paragraph (a) of this section to one additional tier of contracts, as shown in the diagram in the Appendix to this part. [68 FR 66544, 66575, 66577, Nov. 26, 2003] As a participant in a transaction, you will know that it is a covered transaction because the agency regulations governing the transaction, the appropriate agency official, or participant at the next higher tier who enters into the transaction with you, will tell you that you must comply with applicable portions of this part.
Title 15: Commerce and Foreign Trade
PART 26—GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT)
Subpart B—Covered Transactions
§ 26.200 What is a covered transaction?
§ 26.205 Why is it important if a particular transaction is a covered transaction?
§ 26.210 Which nonprocurement transactions are covered transactions?
§ 26.215 Which nonprocurement transactions are not covered transactions?
§ 26.220 Are any procurement contracts included as covered transactions?
§ 26.225 How do I know if a transaction in which I may participate is a covered transaction?
