Subcontracting

Collaboration with other entities is often an essential component of sponsored projects. It is important to determine what type of relationship is formed when collaborating. PI/PDs need to understand the differences between a subrecipient and a vendor. In general terms, a subrecipient is involved in the programmatic aspects of the sponsored project; they are subject to the same terms and conditions of the prime award and are subject to 2 CFR Part 200 Uniform Guidance audit requirements. A vendor is a dealer, distributor, or merchant, who sells goods and services. A vendor is not involved in the programmatic aspects of the sponsored project and is not subject to 2 CFR Part 200 Uniform Guidance audit requirements.  

Guidance for Determining Subrecipient (Subgrant or Subcontract) vs. Contractor (Professional Services/Vendor or Consultant Services) - (PDF)

More information on distinguishing between a vendor and a subrecipient can be found in 2 CFR Subpart D (200.330-200.332).

Most sponsors require their prior approval for UNI to enter into a subrecipient relationship with another entity; therefore PI/PDs must include this information in the proposal to the sponsor. If the proposal is accepted as submitted, the approval is granted. If a subrecipient relationship is created after the project is funded, without prior approval of the sponsor, the PI/PD must contact Office of Research and Sponsored Programs who will request permission from the sponsor to modify the terms and conditions of the agreement.

Subcontract

Once a subrecipient relationship is established, the Office of Research and Sponsored Programs works with the PI/PD and the subrecipient to prepare the contractual paperwork. The instrument used to provide the award to the subrecipient can be called a subcontract, subaward, subgrant or subrecipient agreement. The agreement is between UNI as the primary recipient and the subrecipient. It must include the following:

• Activities to be performed (Scope of Work)
• Time schedule
•  Project policies
•  Reporting requirements
•  Other policies and procedures to be followed
•  Funding amount
•  Cost principles to be used in determining allowable costs
•  CFDA Number, if applicable

Formal modifications are required if there are any changes in the terms and conditions of a fully executed sub agreement. The PI/PD is responsible for monitoring the subrecipient and ascertaining that all fiscal and programmatic responsibilities are fulfilled.

Subrecipients and vendors must have a completed e-Business Supplier Information Form on file with the University.