Re: subaward and consultant Cappellucci, James E. 23 Sep 2008 18:31 EST

You better be careful. You said that the consultant works at the same
institution but will be getting a fee. This is not above board and could be
looked at by the IRS as the institution trying to avoid paying the payroll
taxes. I do not know of any entities that allow employees to be consultants. I
have also never seen a subcontractor on a grant from the same institution. Just
because they did it that way in the past does not make it right.

________________________________

From: Research Administration List on behalf of Dean Drake
Sent: Tue 9/23/2008 7:04 PM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] subaward and consultant

The other thing to note, is that a consultant normally does not use any of your
institutional resources.  They are an independent entity.  Therefore,
technically, they would need to submit their portion of the proposal themselves.
I would make them justify why they believe this is a consultancy.  I agree this
is suspicious and would be very careful about such an arrangement.  If accepted,
review the consultancy for IP and scope, and make sure the employee understands
their role as a consultant. You should also check to see if your institution has
any policies regarding consultancies and conflict of interest.  I would not
recommend allowing someone to be a consultant for an entity when you have a
sponsored research agreement with the same entity, and the work is being
completed by the group the proposed consultant supervises.

Dean A. Drake
Associate VP RIC
UMBI
Phone 410.385.6330
Fax 410.385.6331
http://www.umbi.umd.edu/home.php

________________________________

From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of
Dolce, Peter J
Sent: Tuesday, September 23, 2008 6:30 PM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] subaward and consultant

A consultant is an individual who provides services for a fee; generally a
consultant doesn't contribute substantially to the design of the project, but
rather performs some limited role.  (There's a formal definition of "Consultant"
in the NIH Grants Policy Statement.)  It's quite possible that the lab head
functions as a full collaborator, for which a consortium arrangement is
appropriate, and the clinic director functions as a consultant.

That said-I also would be suspicious of this arrangement.   There's a strong
financial incentive for prime awardees to pay persons at other schools as
consultants because the prime thus avoids paying the other institution's F & A
costs that a subaward would incur; and strong financial incentives for persons
at the sub to function as consultants because they receive the money over and
above their regular salary.  Not sure there's much you can do about it if both
the prime and the clinic director claim the relationship is a consulting one. .
. .

PJD

****************************************************************

Peter J. Dolce, Ph.D.

Associate Vice President for Research

Grants Management and Compliance

1005 D. B. Todd Boulevard

Meharry Medical College

Nashville, TN  37208

Phone 615 327 6237

Fax 615 327 6716

________________________________

From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of
Schmitt, Andrea L
Sent: Tuesday, September 23, 2008 4:45 PM
To: xxxxxx@hrinet.org
Subject: [RESADM-L] subaward and consultant

Hi everyone,

we are participating in an R01 re-submission as a subaward.  Last submission
(prior to me working here) one of our Lab Heads was in the budget as a
subcontract,  and our Clinic Director was named as a consultant and listed in
the prime institutions  budget as a consultant.    I was asked to do the same
for the resubmission,  provide them  a budget for the lab head and  they will
include consultant fees for the clinic director.  My gut says both should be
paid under the subaward costs since they are at the same institution.    Am I
right?  why?  or why not?

Thanks!

Andrea

***PLEASE MAKE NOTE OF NEW EMAIL ADDRESS***

Andrea Schmitt

Grants Administrator

Sun Health Research Institute

10515 West Santa Fe Dr.

Sun City, AZ  85351

623-876-5628

623-876-5461 (fax)

xxxxxx@bannerhealth.com

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