FAR 9.110-4—Procedures.
Plain-English Summary
FAR 9.110-4 explains the procedures that follow when the Secretary of Defense determines, under 32 CFR part 216, that an institution of higher education is ineligible to receive funds from a covered agency because of a policy or practice described in FAR 9.110-3. The section covers two main actions: first, the Department of Defense must create an active exclusion record for the institution in the System for Award Management (SAM); second, covered agencies are prohibited from soliciting offers from, awarding contracts to, or consenting to subcontracts with that institution. The rule is designed to operationalize the ineligibility determination so agencies can identify and avoid doing business with affected institutions. It also includes important exceptions to the prohibition for acquisitions at or below the simplified acquisition threshold and for acquisitions of commercial products and commercial services, including commercially available off-the-shelf items. In practice, this section matters because it turns a policy-based ineligibility finding into a procurement restriction that contracting officers must check before taking award or subcontract consent actions.
Key Rules
DoD creates SAM exclusion
When the Secretary of Defense makes the required ineligibility determination, DoD must enter an active exclusion record in the System for Award Management. This record is the mechanism that makes the restriction visible to contracting personnel and other users of SAM.
Covered agencies may not contract
A covered agency may not solicit offers from, award contracts to, or consent to subcontracts with the affected institution. The prohibition applies broadly to direct contracting actions and to subcontract consent actions.
Exception for small purchases
The prohibition does not apply to acquisitions at or below the simplified acquisition threshold. Those lower-dollar acquisitions are carved out from the restriction even if the institution is otherwise ineligible.
Exception for commercial items
The prohibition also does not apply to acquisitions of commercial products and commercial services, including commercially available off-the-shelf items. Agencies may proceed with these acquisitions despite the exclusion rule.
Trigger depends on formal determination
The procedures in this section are triggered only after the Secretary of Defense determines ineligibility under the procedures in 32 CFR part 216. The procurement restriction is not self-executing without that formal determination.
Responsibilities
Secretary of Defense
Make the ineligibility determination under 32 CFR part 216 and ensure an active exclusion record is created in SAM for the affected institution.
Covered Agency
Refrain from soliciting offers from, awarding contracts to, or consenting to subcontracts with the excluded institution, except where a stated exception applies.
Contracting Officer
Check SAM and other exclusion information before solicitation, award, or subcontract consent; apply the prohibition when applicable; and document use of any exception for simplified acquisitions or commercial products and services.
Subcontracting/Consent Officials
Do not consent to subcontracts involving the excluded institution unless the action falls within an express exception.
Practical Implications
Contracting officers should verify SAM exclusion status early in the acquisition process so they do not issue solicitations or make awards to an ineligible institution by mistake.
The exceptions are important: a covered agency may still buy from the institution for simplified acquisitions or commercial products/services, so users must not assume every transaction is barred.
Because the rule also covers consent to subcontracts, prime contractors and consent authorities need to screen proposed subcontractors, not just prime awardees.
A common pitfall is relying on outdated vendor records instead of the current SAM exclusion record; the SAM entry is the key operational indicator.
If an acquisition appears to fall within an exception, the file should clearly show why the exception applies, since the default rule is prohibition.
Official Regulatory Text
If the Secretary of Defense determines, pursuant to the procedures at 32 CFR part 216 , that an institution of higher education is ineligible to receive funds from a covered agency because of a policy or practice described in 9.110-3 — (a) The Secretary of Defense will create an active exclusion record for the institution in the System for Award Management; and (b) A covered agency shall not solicit offers from, award contracts to, or consent to subcontracts with the institution. The prohibition in this paragraph (b) does not apply to acquisitions at or below the simplified acquisition threshold or to acquisitions of commercial products and commercial services, including commercially available off-the-shelf items.