(a) If, as part of the recipient's annual on-site monitoring of its
SDA's/SSG's, the recipient determines that an SDA/SSG is not in
compliance with the procurement requirements established in accordance
with the provisions at section 164(a)(3) of the Act and Sec. 627.420, of
this part, Procurement, and Sec. 627.422 of this part, Selection of
service providers, the recipient shall:
(1) Require corrective action to secure prompt compliance; and
(2) Impose the sanctions provided for under the provisions at
section 164(b) if the recipient finds that the SDA/SSG has failed to
take timely corrective action under paragraph (a)(1) of this section
(section 164(a) (4) and (5)).
(b) An action by the recipient to impose a sanction against either
an SDA or SSG, in accordance with this section, may be appealed to the
Secretary under the same terms and conditions as the disapproval of the
respective plan, or plan modification, as set forth at Sec. 628.426(e),
Review and approval (section 164(b)(2)).
(c) If, upon a determination under paragraph (a)(2) of this section
to impose a sanction under section 164(b) of the Act, the recipient
fails to promptly take the actions required under paragraph (a)(2) of
this section, the Secretary shall take such actions against the
recipient or the SDA/SSG as appropriate (section 164(b)(3)).
