The Office of Sponsored Programs

Subagreements

Subagreements

 

The Office of Sponsored Research is responsible for preparing and executing all subagreements related to sponsored programs. A subcontractor is not authorized to begin work until the subagreement has been fully executed by the authorized representative from UNCG and the subrecipient institution or organization.

 

  1. What Constitutes a Subagreement:
    1. A subagreement occurs when the Prime Organization with a sponsored grant or contract allocates a portion of the scope of work to be performed by another institution or organization (subrecipient) to complete. A subagreement will only be issued after a fully executed award is received and processed by OSP from the prime sponsor.

 

  1. Subagreement Relationship:
    1. Prime: The prime organization receives the funding support directly from the sponsor. Once the funding has been obtained, the provisions in the prime award “flows down” via a subagreement.
    2. Subrecipient: Also known as a subawardee or subcontractor. Receives the funds from the prime organization to carry out the duties (illustrated) in their provided scope of work.

 

  1. How to Prepare a Subagreement:
    1. Proposal Stage: If a UNCG PI wishes to include another institution in an upcoming proposal as a third party who will perform a substantive portion of the effort, the following documents must be provided to OSP prior to the submission of the proposal:
      1.  UNCG Subagreement Request Form
      2. Detailed subrecipient budget and justification: if the prime organization (UNCG) is allowed to charge indirect costs on the proposal budget, those terms must also flow down to the subrecipient budget form. The budget format and categories should closely follow the proposal guidelines required by the sponsor.
      3. Statement of work.
      4. Letter of intent signed by the subrecipient  institutional authorized official.
      5. Subrecipient must complete the Subrecipient Commitment Form at time of submission.

ii.    Be advised that there must be adequate time provided between the receipt of a subrecipient’s proposal and the proposal’s due date. The subrecipient’s budget, budget justification, and scope of work will undergo the same review process as that of the prime organization.

iii.    The subrecipient’s budget will be included on UNCG’s budget as a direct cost. To calculate UNCG’s F&A costs, the amount that exceeds the first $25,000 of each subaward will be excluded from the calculation.

 

  1. Award Stage:

i.    Once the PI receives the fully executed award, the PI or Research Administrator is responsible for submitting a Subcontractor Request Form to their OSP contact. [Link Form Here].

  1. This information provided on the request form is necessary for OSP to draft the subaward and ensures that the proper steps and determinations have been made prior to the issuance of the subaward. Any additional information that requires special attention in the subagreement should also be provided on the form.

ii.    The Subcontractor Request Form should be submitted to your OSP contact, along with the following documents:

  1. A detailed subrecipient budget and justification: if the prime award allows for indirect costs, then the same terms will flow down to the subrecipient budget.
  2. A statement of work.
  3. A letter of intent signed by the subrecipient institutional authorized official.

 

  1. Types of Subagreements:
    1. Cost-Reimbursement subagreement: the most common subcontract issued by UNCG.

i.    This type of subagreement should be used when the work performed cannot be described in highly quantitative terms or when neither party to the subagreement can estimate its cost with confidence.

ii.    This subagreement estimates a total cost for the purpose of obligating funds and establishes a ceiling that the subcontractor may not exceed without obtaining prior approval from both the prime organization and the sponsor.

iii.    The subcontractor is typically reimbursed post-invoicing for actual costs incurred, so long as the costs were within the subcontractor’s scope of work and are allowable costs.

 

  1. Fixed Price subagreements:

i.    Suitable when the services or goods can be adequately described and measured in clear, unambiguous terms.

ii.    The subcontractor is awarded a specified number of lump sum payments over the course of the project for a performance of a specified set of tasks or received deliverables.

iii.    The guaranteed maximum price may not be increased unless a contract amendment increases the scope of work and budget.

iv.    The subcontractor is at risk to perform, and the recipient (UNCG) is guaranteed a certain level of performance at no risk of spending more than budgeted.

 

  1. Preparing to Issue the Subaward Agreement:
    1. Once the subagreement is prepared, the unsigned subagreement will be sent to the subcontractor for review at the email provided on the Subrecipient Request Form.
    2. At this time the subcontractor may want to negotiate changes or request clarification of the terms and conditions. OSP will negotiate and coordinate those changes with legal counsel, departmental personnel and/or the PI, as applicable.
    3. Once negotiations are complete and the signed subcontract is received, OSP will execute the final version on behalf of UNCG. OSP will send one fully executed copy to the subcontractor and upload a copy of the subagreement into the appropriate RAMSeS proposal/award file.