Subawards

Outgoing Subawards & Sponsored Consulting Agreements

The Outgoing Subaward Team at URA is responsible for processing all outgoing subawards and sponsored consulting agreements.

A subaward normally involves collaboration with another educational or research institution but may be entered into with any organization outside the University. The research is generally performed by the Subrecipient’s personnel using their resources, usually at their site. The Subrecipient takes full responsibility, including intellectual leadership, for the portion of the work statement that they will undertake.

A consultant is an independent contractor and not an employee of the University. A Sponsored Consultant is defined as any person hired in a professional capacity to provide specific expertise in the technical area of the project for a specified period of time under a sponsored agreement (grant, contact, cooperative agreement, etc.). The expertise the consultant is hired to provide is typically not available within the institution. Consulting arrangements are not a substitute for subawards and are not intended to be used when part of the project is performed at another institution.

 

Project Management of an Active Outgoing Subaward

The PI should be monitoring the activities and performance of the subrecipient throughout the life of the subaward by

  • Receiving data and progress reports
  • Receiving deliverables defined in subaward agreement
  • Participation in project conference calls
  • Subrecipient will submit invoices to the Unit in accordance with the subaward agreement, but generally not more frequently than monthly. The Unit will:
    • Complete the Subrecipient Payment Authorization Form and ePayment record
    • The PI will attest that the invoice appears reasonable in light of the Subrecipient's progress
    • Submit documents for payment
    • Cost reimbursement invoices require additional review that includes:
      • Check for a cost sharing expenditure report, if applicable
      • Work with the PI to monitor, track and pay subaward invoices for costs that are:
        • Allowable 
        • Within the performance period of the subaward agreement 
        • Consistent with award budget
      • Check that foreign subrecipients include a detailed transaction list with:
        • The item reimbursement is being requested
        • Amount in local currency
        • Exchange Rate
        • Amount in USD
      • The PI will need to attest that the invoice appears reasonable in light of the Subrecipient's progress reports

At the end of the subaward performance period,

  • The subrecipient should provide a Final Invoice per the agreement terms
  • The PI and UA should review the invoice for payment
  • When closing out an award, all subrecipient invoices should be included in the Closing Memo totals submitted to URA.

 

Special Situations

  • Adding a subaward that was not included in the proposal
    • UA reviews prime award agreement and checks with their Post Award RA to determine if prior approval is required
    • If prior approval is required, UA routes a request in AURA as an AMR with the following included:
      • Letter from the PI to the agency/sponsor indicating the reason for the change/addition and effect on the project
      • Completed and signed Subrecipient Commitment Form
      • Scope of work
      • Budget and Budget Justification
      • Subrecipient’s F&A Rate Agreement
         
  • Subrecipient PI Change of institution – When a PI from original Subrecipient institution moves to a new institution and the project is moving with him/her, a new subaward is required. Coordination is necessary as there are multiple steps:
    • Terminating the original subaward via a modification.
    • Approval from the sponsor to add the new institution as a Subrecipient, if necessary.
    • Issuing a new subaward to the new institution. This action will require the same information required for establishing a new subaward:

  • Adding a Foreign Subaward Not Included Proposal – When a foreign subrecipient is a part of a sponsored award, a fixed amount agreement should be used. A cost reimbursement agreement must be used if the federal subaward has mandatory cost share or the subaward amount (including supplements and modifications) is expected to be over the Simplified Acquisition Threshold.

    UA should review the prime award agreement and determine if prior approval is required. They should then route an Award Modification Request to their Post Award RA with the following included:

    • Letter from the PI to the agency/sponsor indicating the reason for the change/addition and effect on the project, if prior approval is required
    •  Completed and signed Subrecipient Commitment Form
    • Scope of Work
    • Milestones Based Budget and Budget Justification

 

Common Terms In Subawards

  • Sponsor: The organization that funds a research project. In AURA, this is the agency/sponsor, question 1.5.
  • Prime Institution: The institution that has directly received the award from the Sponsor.
  • Prime Award: The award letter/instrument provided by the Sponsor that funds the project.
  • Subrecipient: The legal entity to which a subaward is made when the Prime Award is a grant or cooperative agreement (assistance mechanism) and which is accountable to the Prime Institution for the statement of work.
  • Subaward: The formal agreement between the Prime Institution and the Subrecipient, written under the authority of, and consistent with the terms and conditions of an award (a grant, contract or cooperative agreement), that transfers a portion of the research or substantive effort of the prime award to another institution or organization.
  • Flow-down or Flow-through: Applying the terms and conditions in the Prime Award to the subaward.
  • Modification/amendment: Mechanism used to modify any aspect of an existing subaward agreement. Used interchangeably with Amendment.
  • Fixed Amount Agreement: Fixed Amount Agreements are recommended for foreign subrecipients. Fixed amount agreements are issued when performance is based on milestones/deliverables, each of which is assigned a lump sum amount. A milestones based budget and scope of work must be provided at the proposal stage when a fixed amount subaward agreement will be used. Federal fixed amount subawards must be approved by the federal awarding agency prior to issuance up to the Simplified Acquisition Threshold. Federal fixed amount subawards cannot be used in programs that require a mandatory cost-share or match. 

  • Cost Reimbursement Agreement: A cost reimbursement agreement is based on actual project expenditures incurred during the performance period, up to an agreed amount. A detailed budget and scope of work must be provided at the proposal stage when a cost reimbursement agreement will be used.

 

Items of note for Sponsored Consulting Agreements

A Sponsored Consulting Agreement (SCA) may not be executed if the individual is a current or recent former employee (current calendar year) employee of The University of Chicago in any capacity.

A consultant hired under a sponsored project may be compensated for services, and reimbursed for travel (including meals and lodging) and other miscellaneous expenses. Any payment made to consultants must comply with the University’s and the sponsoring organization’s regulations on compensation and travel.

When engaging a consultant under a grant or contract, an SCA should be prepared prior to any services being performed. The SCA must include a statement of work and a budget that breaks down the costs to complete the statement of work. The work must be conducted and completed during the performance period of the award. 

 

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