About 2 CFR 25 (DUNS & SAM)

On 22FEB2021, 2 CFR 25 was changed. See 86 FR 33 10439-40.

OMB corrected an error from the 13 AUG 2020 revision. All that changed is an item of definition in Appendix A.

Previously, Appendix A.I.C.3 had defined the term /Entity/ to include domestic and foreign for-profit organizations. With this correction, that category (for-profit organizations) has been eliminated from the definition.

No other changes.

Feel free to consult my transcribed study guide for 2 CFR 25.


On 13AUG2020, 2 CFR 25 was changed. See 85 FR 49525. There were no substantive changes to the regulation. While the changes are mostly housekeeping, they included a significant improvement that clarifies the long-standing confusion as to how these requirements apply to subrecipients.

My synopsis of these changes is here.

The full text of the announced changes was published in the Federal Register on 13 AUG 2020. The PDF of all changes is here. The specific changes to 2 CFR 25 are on pages 49522-49525.


History:
75 FR 7316 (18 FEB 2010) announced and explained the plan to create 2 CFR 25, 2 CFR 27, 2 CFR 35, 2 CFR 77 and 2 CFR 180. It also announced the creation of FAPIIS.

2 CFR 25 implements Pub. L. 109-282 (31 USC 6102) and imposes the following two important requirements:

  • that applicants for federal awards (including first-tier subawards) must have a unique entity identifier (currently DUNS number); and
  • that applicants for federal awards (primes ONLY) must be registered in the System for Award Management (SAM).

Subrecipients ARE NOT REQUIRED to be registered in SAM. Federal awarding agencies sometimes can be confused about this requirement, so it is useful to understand the background.

OMB guidance published on 14 SEP 2010 at 75 FR 55663 et seq. and 75 FR 55671 et seq. (links below) indicates that SAM (formerly CCR) registration requirements apply only to direct recipients of Federal awards.

DUNS requirements still apply to subrecipients at the first tier.

The version of 2 CFR 25 published in the 2019 edition of the CFR indicates that no changes to this regulation have occurred since September 2015 (80 FR 54407 et seq.), which only corrected the terminology “System of Award Management” to read “System for Award Management.” Prior to that, the most recent change occurred in December 2014 (79 FR 75871 et seq.), which only corrected terminology from referring to the CCR to referring to the SAM. Thus, the current version is essentially the same as the original final rule published on 14 September 2010 (75 FR 55671 et seq.).

I can’t find evidence of any significant changes to the regulation (never mind the ADS) since 2010. Keep this in mind.

The commentary in the final guidance of 14 SEP 10 (79 FR 55671 et seq., link below) is clear that SAM (then CCR) registration is required only for direct recipients of federal awards. See the last sentence of the last full paragraph in the middle column of page 55672, which reads: “Although the guidance proposed in February 2010 would have broadened the CCR requirement to first-tier subrecipients, the final guidance being adopted at this time does not require CCR registration for any subrecipients.”

In September 2015, USAID's then Deputy Director of OAA issued a directive to all USAID COs and AOs reminding them of the regulatory requirements and advising them not to require SAM registration of subrecipients. Current members of Humentum can find a record of that at https://connect.humentum.org/communities/community-home/digestviewer/viewthread?GroupId=55&MID=14714&tab=digestViewer.

But keep in mind that the requirements of 2 CFR 25 apply to all US awarding agencies, not USAID alone.

Links:
2 CFR 25 published in the 2019 edition of the CFR (link) https://www.gpo.gov/fdsys/pkg/CFR-2019-title2-vol1/pdf/CFR-2019-title2-vol1-part25.pdf

80 FR 54407 https://www.gpo.gov/fdsys/pkg/FR-2015-09-10/pdf/2015-22074.pdf

79 FR 75871 https://www.gpo.gov/fdsys/pkg/FR-2014-12-19/pdf/2014-28697.pdf

75 FR 55671 https://www.gpo.gov/fdsys/pkg/FR-2010-09-14/pdf/2010-22706.pdf

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