(a) If the recipient or contractor does not comply during the period of time set under § 98.9(c), the Secretary may either:

1. (1) For a recipient, take an action authorized under 34 CFR part 78, including:

   1. (i) Issuing a notice of intent to terminate funds under 34 CFR 78.21;
   2. (ii) Issuing a notice to withhold funds under 34 CFR 78.21, 200.94(b), or 298.45(b), depending upon the applicable program under which the notice is issued; or
   3. (iii) Issuing a notice to cease and desist under 34 CFR 78.31, 200.94(c) or 298.45(c), depending upon the program under which the notice is issued; or

2. (2) For a contractor, direct the contracting officer to take an appropriate action authorized under the Federal Acquisition Regulations, including either:

   1. (i) Issuing a notice to suspend operations under 48 CFR 12.5; or
   2. (ii) Issuing a notice to terminate for default, either in whole or in part under 48 CFR 49.102.

(b) If, after an investigation under § 98.9, the Secretary finds that a recipient or contractor has complied voluntarily with section 439 of the Act, the Secretary provides the complainant and the recipient or contractor written notice of the decision and the basis for the decision.

(Authority: 20 U.S.C. 1221e-3(a)(1), 1232h)