2 CFR § 1138.5 - Authority to omit or reserve portions of SUB Articles I through XII.

---
identifier: "/us/cfr/t2/s1138.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 1138.5 - Authority to omit or reserve portions of SUB Articles I through XII."
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "1138.5"
section_name: "Authority to omit or reserve portions of SUB Articles I through XII."
chapter_name: "DEPARTMENT OF DEFENSE"
subchapter_number: "D"
subchapter_name: "ADMINISTRATIVE REQUIREMENTS TERMS AND CONDITIONS FOR COST-TYPE GRANTS AND COOPERATIVE AGREEMENTS TO NONPROFIT AND GOVERNMENTAL ENTITIES"
part_number: "1138"
part_name: "REQUIREMENTS RELATED TO SUBAWARDS: GENERAL AWARD TERMS AND CONDITIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301 and 10 U.S.C. 113."
regulatory_source: "85 FR 51171, Aug. 19, 2020, unless otherwise noted."
cfr_part: "1138"
---


# 1138.5 Authority to omit or reserve portions of SUB Articles I through XII.

A DoD Component's general terms and conditions may:

(a) Omit SUB Articles II through XII that are the subject of this part if the DoD Component does not allow recipients to make subawards under awards using those terms and conditions. The DoD Component also may amend SUB Article I in that case, to state the prohibition on making subawards and limit the recipient's responsibility to ensuring that any transaction it awards at the next tier is a procurement transaction.

(b) Reserve portions of SUB Articles I through XII that do not apply to the DoD Component's awards using those terms and conditions. For example, the DoD Component may reserve paragraphs in SUB Articles IV through IX specifying administrative requirements that flow down solely to subawards to States if it determines that there is no possibility of a subaward to a State under any of the awards using its general terms and conditions. Similarly, it may reserve SUB Article XII if it does not permit any fixed-amount subawards under its awards.