34 C.F.R. § 367.60
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—
(b) Contracts with individuals, entities, or organizations that are not public or private nonprofit agencies or organizations.
(Authority: Sections 752(g) and (h) of the Rehabilitation Act of 1973, as amended; 29 U.S.C. 796k(g) and (h)(2)(A))