Subpart D: Post-award requirements 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.321: Contracting with small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms

2 CFR 200.321 sets 2 requirements for organizations that receive federal grants and cooperative agreements. Applies while you manage a federal award.

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What 2 CFR 200.321 requires

1. Procurement

What you must do

When possible, ensure small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms are considered by: including these business types on solicitation lists; soliciting them whenever they are deemed eligible as potential sources; dividing procurement transactions into separate procurements to permit their maximum participation; establishing delivery schedules that encourage their participation; and utilizing organizations such as the Small Business Administration and the Minority Business Development Agency. Applies to States and Indian Tribes even when they use their own procurement policies (per 200.317).

When it applies

Any contracting under the Federal award where such firms could be potential sources.

Budget justificationSubaward and contracting planMbe wbe utilization plan
2. Procurement

What you must do

Require contractors under the Federal award to apply the same consideration steps for small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms to their subcontracts.

When it applies

Prime contracts under the award will involve subcontracting.

Subaward and contracting plan
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Sections that refer to 2 CFR 200.321

Regulation text of 2 CFR 200.321

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(a) When possible, the recipient or subrecipient should ensure that small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms (See U.S. Department of Labor's list) are considered as set forth below.

(b) Such consideration means:

(1) These business types are included on solicitation lists;

(2) These business types are solicited whenever they are deemed eligible as potential sources;

(3) Dividing procurement transactions into separate procurements to permit maximum participation by these business types;

(4) Establishing delivery schedules (for example, the percentage of an order to be delivered by a given date of each month) that encourage participation by these business types;

(5) Utilizing organizations such as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and

(6) Requiring a contractor under a Federal award to apply this section to subcontracts.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.321

What does 2 CFR 200.321 require?

When possible, ensure small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms are considered by: including these business types on solicitation lists; soliciting them whenever they are deemed eligible as potential sources; dividing procurement transactions into separate procurements to permit their maximum participation; establishing delivery schedules that encourage their participation; and utilizing organizations such as the Small Business Administration and the Minority Business Development Agency. Applies to States and Indian Tribes even when they use their own procurement policies (per 200.317). Require contractors under the Federal award to apply the same consideration steps for small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms to their subcontracts.

When does 2 CFR 200.321 apply?

Any contracting under the Federal award where such firms could be potential sources. Prime contracts under the award will involve subcontracting.

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.