
Special Award Conditions (SACs) are requirements or restrictions added to a federal award by NTIA or an Eligible Entity (EE) when a subgrantee fails to meet a milestone, violates program terms, or shows performance deficiencies.
SACs function as corrective measures and remain in effect until the identified issues are resolved to the satisfaction of oversight authorities. Examples include more frequent reporting, third-party monitoring, limits on access to funds, mandatory technical assistance, or adjustments to the subgrantee’s management structure.
If deficiencies persist, SACs may escalate to stronger remedies such as project termination or recovery of funds. SACs serve as an intermediate enforcement tool between an initial warning and the most severe sanctions.
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