Recipe for Success in Subcontracting

Crystal Miller

and

Elizabeth Fowlkes

Award• Financial assistance that provides support

to accomplish a public purpose– Includes grants and other agreements in the

form of money or property in lieu of money• Does not include

– Technical assistance (provides services, not money)

– Loans, loan guarantees, interest subsidies or insurance

– Direct payments to any kind of individuals

Definitions

Subaward/Subcontract• Financial assistance made under award to

an eligible subrecipent• Includes financial assistance provided by

any legal agreement• Does not include procurement of goods or

services• Transfers a portion of the research or

substantive effort to another institution• Award issued under authority of and

consistent with terms and conditions of award (prime)

Definitions

Pass Through Entity

• Organization receiving funding from the prime and awarding a portion of the funding for research or substantive effort to be performed by another organization

• Responsible for conducting a portion of the work scope

Definitions

Subrecipient• Has responsibility in completing the

workscope of the project• Has responsibility in programmatic

decision-making• Has responsibility for adherence to

applicable federal compliance responsibilities

• Uses federal funds to carry out a program of the prime

Definitions

Vendor• Provides goods and services within normal

business operations• Provides similar goods and services to

many different purchasers• Operates in a competitive environment• Provides goods and services that are

ancillary to the operation of the federal program

• Is not subject to compliance requirements of the federal program

Definitions

For This Presentation• Subaward – instrument that flows-

down programmatic effort under financial assistance

• Subrecipent – entity to whom a subaward is issued

• Subcontract –document that flows down programmatic effort under the federal contract

Definitions

For This Presentation

• Subcontractor – entity to whom a subcontract is issued

• Vendor – entity that provides commercial goods and services

Definitions

What is a Subcontract ?

Question 1Question 1

Ans

wer

1

• Two types– UNMC is prime

– Someone else is prime• Another University• A foundation• A for profit company

• UNMC is prime– Subcontract Out

• SPA and PI determine terms and conditions

• SPA negotiates with subcontractee

• Someone else is the prime– SPA works with sponsor to

negotiate terms and conditions

Ans

wer

1

Why do subcontracts need tocome through Sponsored

Programs Administration ?

Question 1Question 2

• SPA– Oversight responsibility

– Compliance responsibility

Ans

wer

2

Ans

wer

2• Oversight responsibility

– Ensure compliance with financial guidelines• Spending down• Following cost accounting

standards• Following sponsor guidelines

– If over 25% remaining• Monitoring adequate explanation of

remaining funds

–Formal requests monitored• Carryforward

–Amount of DC & IDC–Why funds are left–Why carryforward is needed–How will the remainder be spent

• Rebudget over 25%

– Compliance Responsibilities• Track IRB and IACUC approvals• Work scope• Detailed budget

– Even if modular

• Detailed budget justification• Intent to form a subcontract• Checklist page• Biosketch• Letter of collaboration• Subcontract Contact Information

Why does SPA issue “new”

contracts annually, instead of

ammendments?

What is needed at the proposal

stage?

Subcontract In vs. Subcontract

Out

Oversight Responsibilities

Compliance Responsibilities

Non-Competative Subcontracts

Why is a work statement needed?

Award Stage – What is needed?

New Budget - 101

Subcontract F&A Activity