2 CFR § 1125.332 - What method must I use to pass requirements down to participants at lower tiers with whom I intend to do business?

---
identifier: "/us/cfr/t2/s1125.332"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 1125.332 - What method must I use to pass requirements down to participants at lower tiers with whom I intend to do business?"
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "1125.332"
section_name: "What method must I use to pass requirements down to participants at lower tiers with whom I intend to do business?"
chapter_name: "DEPARTMENT OF DEFENSE"
subchapter_number: "C"
subchapter_name: "AWARD FORMAT AND NATIONAL POLICY TERMS AND CONDITIONS FOR ALL GRANTS AND COOPERATIVE AGREEMENTS"
part_number: "1125"
part_name: "NONPROCUREMENT DEBARMENT AND SUSPENSION"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235; 5 U.S.C. 301 and 10 U.S.C. 113."
regulatory_source: "72 FR 34984, June 26, 2007. Redesignated at 85 FR 51161, Aug. 19, 2020."
cfr_part: "1125"
---


# 1125.332 What method must I use to pass requirements down to participants at lower tiers with whom I intend to do business?

You as a participant in a covered transaction must include a term or condition in any lower-tier covered transaction into which you enter, to require the participant of that transaction to—

(a) Comply with subpart C of the OMB guidance in 2 CFR part 180; and

(b) Include a similar term or condition in any covered transaction into which it enters at the next lower tier.