2 CFR § 3485.330 - What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business?

---
identifier: "/us/cfr/t2/s3485.330"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 3485.330 - What methods 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: "3485.330"
section_name: "What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business?"
chapter_name: "DEPARTMENT OF EDUCATION"
part_number: "3485"
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: "E.O. 12549 (3 CFR 1986 Comp., p. 189); E.O. 12689 (3 CFR 1989 Comp., p. 235); sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 6101 note); 20 U.S.C. 1082, 1094, 1221e-3, and 3474, unless otherwise noted."
regulatory_source: "77 FR 18673, Mar. 28, 2012, unless otherwise noted."
cfr_part: "3485"
---


# 3485.330 What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business?

(a) Before entering into a covered transaction with a participant at the next lower tier, you must require that participant to—

(1) Comply with this subpart as a condition of participation in the transaction. You must do so using the method specified in paragraph (b) of this section; and

(2) Pass the requirement to comply with this subpart to each person with whom the participant enters into a covered transaction at the next lower tier.

(b) To communicate the requirements in this part to a participant, you must include a term or condition in the transaction that requires the participant's compliance with part 180, subpart C, of this title, as adopted at § 3485.12, and requires the participant to include a similar term or condition in lower-tier covered transactions.

(c) The failure of a participant to include a requirement to comply with Subpart C of 2 CFR part 180 in the agreement with a lower tier participant does not affect the lower tier participant's responsibilities under this part.

(Authority: E.O. 12549 (3 CFR 1986 Comp., p. 189); E.O. 12689 (3 CFR 1989 Comp., p. 235); sec. 2455, Pub. L. 103-355, 108 Stat. 3327 (31 U.S.C. 6101 note); 20 U.S.C. 1082, 1094, 1221e-3, and 3474)