Subcontracts University of Washington School of Nursing (SON) Enhancing Research Methods: An Invited...

Subcontracts

University of WashingtonSchool of Nursing (SON)

Enhancing Research Methods: An Invited Conference

9.15.06

University of Washington

SUBCONTRACTS

Presenter:

Michael J. BlackwellSubcontract Administrator

Office of Sponsored Programs

SON - S U B C O N T R A C T S

Through this workshop, you will learn…

What a Subcontract is and how it differs from a Purchase Order for goods and services;

The proposal requirements for including a Subcontractor;

How to transfer the funds to the Subcontractor; and

The procedures for closing out a Subcontract.


I. Background, Definition, and Budget Format

II. Responsibilities of the UW PI and Various Offices

III. Subcontracts to the UW from Another Institution

IV. Case Study/Discuss Handout

V. Questions or Need More Help?


I. Background, Definition, and Budget Format

Background

From fiscal year 2000 to 2005, the growth in dollars of UW issued subcontracts has been 140%. During the same period, overall sponsored awards grew by 53% at UW.

This is part of a larger national trend by Federal sponsors to encourage cross-disciplinary collaborative research, e.g., in RFAs or RFPs.

SON - S U B C O N T R A C T S Background, Definition, and Budget Format


Definition

Characteristics indicative of a Federal award received by a subrecipient are when the organization:

Determines who is eligible to receive what Federal financial assistance;

Has its performance measured against whether the objectives of the Federal program are met;

Has a responsibility for programmatic decision making;

Has responsibility for adherence to applicable Federal program compliance requirements; and

Uses the Federal funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity.


Definition

Characteristics indicative of a payment for goods and services received by a vendor are when the organization:

Provides the goods and services within normal business operations;

Provides similar goods of services to many different purchasers;

Operates in a competitive environment;

Provides goods or services that are ancillary to the operation of the Federal program; and

Is not subject to compliance requirements of the Federal program.

Budget Format

A. Salaries $100 K

B. Benefits $ 22 K

C. Supplies $ 5 K

D. Subcontract (MIT) $ 35 K

E. Other $ 5 K

F. Subtotal DC = $167 K

G. Subtotal [email protected]% MTDC = $87.14 K

H. GRAND TOTAL = $254.14 K



II. Responsibilities of the UW PI and Various Offices

Proposal Stage:

When, as a PI, you select one or more Subcontractors, be sure to get a signed proposal (at a minimum, work scope and detailed budget).

Encourage use of prime sponsor forms by the Subcontractor, e.g., NIH 398.

SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

This Subcontract proposal is then folded into the UW proposal for transmittal through UW channels and on to the sponsor.

The first $25K is subject to UW IDC, unless the standard rate is not allowed by the sponsor.


Award Stage:

When the award, including the proposed

Subcontract, is made to the UW, a

Budget No. is assigned by Grant and

Contract Accounting (GCA) and the PI

notified.


• To avoid unnecessary delays, the PI

or designated staff person in the local

UW department must:

immediately enter an on-line Purchase Requisition (PR) in the amount of the Subcontract,

which is then directed via Purchasing to OSP,

where the Subcontract, including all applicable conditions, is prepared.


Subcontract Preparation:

OSP’s Subcontract Administrator will use a standard template of general conditions (see OSP web site) and add the special “flowdown conditions” from the prime sponsor.

The Subcontractor will be contacted for review and confirmation of all terms, especially the budget (cost and price analysis) and the need for an audit report.


Execution, Mailing, Distribution, and Encumbrance:

Purchasing and Payables Administration.


• Once signed by the Director of UW Purchasing and Stores, sent and

returned signed by the Subcontractor, it is at this point that the funds are

encumbered in ordered status so that invoices from the Subcontractor may be

received and approved for payment.


Invoice or Voucher Review and Approval:

Subcontractor submits invoices at least quarterly, not more frequently than monthly, to Payables Administration (PA).

PA coordinates with PI and department staff on approval of invoices, then authorization is granted back to PA for check issuance.


Close-out:

Reminder memo sent to UW PI by

Subcontract Administrator 30 days following

termination or expiration.

Final technical report due within 30 days

following termination.


Close-out:

Final invoice due within 60 days following

termination.

Other items, e.g., intellectual property or

equipment disposition or Exhibit D Close

Out Certification.


Renewals or Modifications:

If the PI, under the prime award, receives a new Budget No., do a new PR.

If the existing Budget No. is used to continue the research program, just send a request in writing/e-mail to the OSP Subcontract Administrator.

PIs are not authorized to amend Subcontract terms (see Article VI).


SON – SUBCONTRACTSFIVE MOST COMMON DELAYS

* UW PI or staff obtain budget number from UW GCA but fail to initiate a new Purchase Requisition (object code 03-62) in PAS. This is the most common reason for delays.

* The amount on the Purchase Requisition doesn’t match the amount to be awarded to the Contractor.

* The Contractor’s proposal doesn’t contain a work scope and/or adequate budget justification.

* There is no official Contractor proposal in the UW proposal that was funded, nor is there one “after the fact.”

* Obtaining prime sponsor approval—can take as long as 30 – 60 days to obtain w/ certain sponsors.


III. Subcontracts to the UW from Another Institution

SON - S U B C O N T R A C T SSubcontracts to the UW from Another Institution

Members of the faculty are

sometimes invited by colleagues at

other institutions to participate in

research and other sponsored

programs.


Faculty member should prepare and submit, through regular UW channels, a proposal with Form eGC-1 outlining the extent of participation and funding and facilities commitment necessary to

carry out the participation.


This will provide an opportunity for the same type of review given proposals

going to primary funding sources, and will assure the awardee institution of official UW approval of the proposed

collaboration.


IV. Case StudyDiscuss handout


V. Questions or Need More Help?

SON - S U B C O N T R A C T S Questions or Need More Help?

Questions concerning subcontracting for sponsored programs should be directed to:

Michael J. Blackwell Subcontract Administrator

Office of Sponsored Programs206-543-4043

[email protected]

SON – SUBCONTRACTSQuestions or Need More Help?

Questions concerning how to process invoices and payments to Contractors should be directed to:

PAYABLES ADMINISTRATON

Customer Inquiries

206-543-4500

[email protected]

(Must have the Subcontract No. to contact this office.)

Questions concerning subcontracting using gift and state budgets should be directed to:

Debbie CarterAssistant to the Director and Client Support Manager of Subcontracts,

Purchasing and Stores206-543-5823

[email protected]

SON - S U B C O N T R A C T S Questions or Need More Help?

Subcontracts University of Washington School of Nursing (SON) Enhancing Research Methods: An Invited...

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