(a) This part prescribes administrative requirements for awards to for-profit organizations.(b) Applicability to prime awards and subawards is as follows:(1)Prime awards. DoD Components shall apply the provisions of this part to awards to for-profit organizations. DoD Components shall not impose requirements that are in addition to, or inconsistent with, the requirements provided in this part, except:(i) In accordance with the deviation procedures or special award conditions in § 34.3 or § 34.4 , respectively; or(ii) As required by Federal statute, Executive order, or Federal regulation implementing a statute or Executive order.(2)Subawards.(i) Any legal entity (including any State, local government, university or other nonprofit organization, as well as any for-profit entity) that receives an award from a DoD Component shall apply the provisions of this part to subawards with for-profit organizations. It should be noted that subawards (see definition in § 34.2 ) are financial assistance for substantive programmatic performance and do not include recipients' procurement of goods and services.(ii) For-profit organizations that receive prime awards covered by this part shall apply to each subaward the administrative requirements that are applicable to the particular type of subrecipient.63 FR 12204, Mar. 12, 1998, as amended at 85 FR 51244 , Aug. 19, 2020