15 CFR §20.18

1. (a)When, under the provisions of these regulations, DOC terminates the funding of a recipient, the Secretary may, using undisbursed funds from the terminated award, make a new award to an alternate recipient, i.e. any public or non-profit private organization or agency, or State or political subdivision of the State.
2. (b)The Secretary will require any alternate recipient to demonstrate:
   1. (1)The ability to comply with these regulations; and
   2. (2)The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.