A subaward is a document between the primary award recipient (CSUCI) and a secondary institution. The subaward contains the work specifications, approved budget, and the terms and conditions under which the work is to be accomplished. A subaward is issued when a third-party organization is needed to perform a scientific or programmatic portion of a CSUCI sponsored project. The awarding agency holds the primary award recipient (CSUCI) responsible for the subawardee’s work performance, its outcomes, and financial and regulatory compliance oversight.
If CSUCI is to serve as a subawardee, the same proposal preparation and routing is required. RSP requests that the Principal Investigator (PI) submit an Intent to Apply and work with our office to develop a budget that will be routed along with CSUCI’s Scope of Work (SOW), budget justification, and Proposal Administrative Review (PAR) PI form prior to submission to the lead institution, which typically takes place 7-10 days prior to the submission deadline.
The term “subaward” includes the following types of award mechanisms:
- Subgrant
- Subcontract
- Collaboration Agreement
- Consortium Agreement
The type of subaward is determined by the mechanism utilized for the prime award. For example, a grant issued to CSUCI, may contain a subgrant to the secondary institution, whereas a contract will warrant issuance of a subcontract.
What is the difference between the Subaward process and the Procurement of Services/Consultant Services?
A subawardee is an organization that will carry out a portion of the project independently under the Sub-awardee’s Project Director using the resources and facilities of his/her place of employment but reports progress regularly to CSUCI. A subawardee is an organization responsible for managing the technical and administrative aspects of a scope of work, and providing progress/annual reports to the PI, as necessary.
A service provider is an organization/vendor from which CSUCI procures consulting services, technical services such as lab work, film editing etc., and/or general support services. The work does not involve scientific and/or programmatic collaboration; it is more characteristic of a buyer-seller relationship. This type of service does not constitute a sub-award.
A consultant is an individual (including individuals operating under a business name), usually an expert, working on a project as an independent contractor and therefore is not under the direction of CSUCI and/or the Principal Investigator. Individuals generally render services on a “work for hire” basis and assign all tangible and intangible property rights to CSUCI. A contract for consultant services does not generally require the inclusion of the terms and conditions contained in CSUCI’s prime award. Consultants are retained in accordance with CI’s Independent Contractor Policy. Under this standard, CSUCI would not direct or retain control over a consultant. Consulting services are different than sub-awards.
An employer-employee relationship exists when CSUCI personnel have a great deal of control over the work, including providing regular supervision, decision-making and guidance. In this situation, the person should be classified as an employee, NOT as a consultant.
| Subrecipient | Contractor |
|---|---|
| Determines who is eligible to receive what Federal assistance; | Provides the goods and services within normal business operations; |
| Has its performance measured in relation to whether objectives of a Federal program were met; | Provides similar goods or services to many different purchasers; |
| Has responsibility for programmatic decision making; | Normally operates in a competitive environment; |
| Is responsible for adherence to applicable Federal program requirements specified in the Federal award; and | Provides goods or services that are ancillary to the operation of the Federal program; and |
| In accordance with its agreement, uses the Federal funds to carry out a program for a public purpose specified in authorizing statute, as opposed to providing goods or services for the benefit of the pass-through entity. | Is not subject to compliance requirements of the Federal program as a result of the agreement, though similar requirements may apply for other reasons. |