367.41—When may a DSA award grants or contracts?
(a)
A DSA may operate or administer the program or projects under this part to carry out the purposes specified in § 367.1, either directly or through—
(2)
Contracts with individuals, entities, or organizations that are not public or private nonprofit agencies or organizations.
(b)
Notwithstanding paragraph (a) of this section, a DSA may enter into assistance contracts, but not procurement contracts, with public or private nonprofit agencies or organizations in a manner consistent with 34 CFR 366.32(e).