Here are my thoughts after reading the input from Michael, Sandra and Franci:

 

The NSF argument seems to hinge on the fact that there is a building or a renovation at the end of the process that encompasses most of the project budget and that because we hired someone to do the work, they’re a subawardee. 

 

Here are some of the criteria that usually help us determine if something is a subaward or a vendor:

 

Did the contractor have anything to do with the development of the project?  In our case, no. 

 

Will they have any opportunity to decide how the renovations are to be implemented – not really….ISU directs and approves.  The contractor does not act independently and doesn’t determine key objectives or goals. 

 

Will the contractor write reports or provide input into them?  ISU will provide the contractors’ monthly invoices, etc. to NSF but the contractors will not write progress summaries or complete a final progress report.

 

 

I still think we have a procurement process here even if the budget is primarily for construction.

 

It’s probably a battle we’ll lose (as it appears most other institutions who’ve received this funding have) but it’s worth the discussion with NSF. 

 

Rochelle R. Athey, CRA
Director
Office of Sponsored Programs Administration
Iowa State University
1138 Pearson Hall
Ames Iowa 50011-2207
Phone:  515-294-7723
Fax:  515-294-8000

 

From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Farnsworth, Franci
Sent: Wednesday, April 13, 2011 9:56 AM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] Can we talk to any institution that has received funding under the NSF Academic Research Infrastructure Program: Recovery and Reinvestment (ARI-R2)

 

Somewhere in the definition of “subaward” there’s also the consideration of transfer of “substantive effort”.       For our ARI-R2 award we really are procuring a product – we were awarded funds to acquire a new research vessel (so we have a contract to build a boat).         When we argued about “goods and services”,  we came up against the “substantive effort” clause and there’s no question that our contract with the boat builder transfers “substantive effort” (in fact, almost the entire grant budget).      So we went the “request approval for a subaward”  route.

 

We were, however, successful in arguing that two other contracts (both over that $15k limit that NSF put forth in an email to us last fall) that are necessary to our project were in fact procurement of services and should not be handled as subawards.      We sent an email to the program officer with appropriate documentation asking the program officer to release funds for the specific item, which was done via “program officer notes” in Fastlane and then processed by DGA into revised award letters.       [One contract is actually for consulting services, the other for a marine transport firm to transport our vessel closer to us.]

 

Hope this helps.

 

 

Frances Vinal Farnsworth
Coordinator of Sponsored Research

Davis Family Library 223
Middlebury College
Middlebury, VT 05753

Tel:  802-443-5889
Email:  xxxxxx@middlebury.edu

http://www.middlebury.edu/offices/support/grants

 

 

 

From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Athey, Rochelle R [VPRED]
Sent: Wednesday, April 13, 2011 10:08 AM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] Can we talk to any institution that has received funding under the NSF Academic Research Infrastructure Program: Recovery and Reinvestment (ARI-R2)

 

Under the NSF Research Terms and Conditions pg. 6, NSF itself states that a subaward is:

 

(h) In lieu of the definition given in 2 CFR 215.2(ff), the term “subaward”

means an award of financial assistance in the form of money, or property

in lieu of money, made under an award by a recipient to an eligible

subrecipient or by a subrecipient to a lower tier subrecipient. The term

includes financial assistance when provided by any legal agreement, even

if the agreement is called a contract, but does not include procurement of

goods and services nor does it include: technical assistance, which

provides services instead of money; other assistance in the form of loans,

loan guarantees, interest subsidies, or insurance; direct payments of any

kind to individuals; and, contracts which are required to be entered into

and administered under procurement laws and regulations

 

Thus, NSF considers a subaward an award of financial assistance and the term does not include “procurement of goods and services,” which in the university’s view is what we are doing (procuring goods and services) when we hire contractors to construct a building (or renovate it in ISU’s case).

 

Rochelle R. Athey, CRA
Director
Office of Sponsored Programs Administration
Iowa State University
1138 Pearson Hall
Ames Iowa 50011-2207
Phone:  515-294-7723
Fax:  515-294-8000

 

From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of J. Michael Slocum
Sent: Wednesday, April 13, 2011 8:57 AM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] Can we talk to any institution that has received funding under the NSF Academic Research Infrastructure Program: Recovery and Reinvestment (ARI-R2)

 

Why would the contractors not be subrecipients?

They are not providing "goods or services that are required for the conduct of a Federal Program." (i.e., vendors)

They are:
... a non-Federal entity that expends Federal awards received from a pass-through entity to carry out a Federal program, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency. Guidance on distinguishing between a subrecipient and a vendor is provided in §___.210.

The Federal Program is to build the new building.  That objective is not a milestone on the way to something else.

Construction under federal grants has almost always been subject to comprehensive flow-through requirements, including Davis-Bacon, etc.

A-110 doesn't make any distinctions between procurements and "sub-awards."  Both are subject to the institution's procurement rules, which should include flow-downs, and audits when appropriate.

J. Michael Slocum
Slocum & Boddie, PC
6225 Brandon Ave.
Suite 310
Springfield, VA 22150
703-451-9001
703-451-8557 (fax)
xxxxxx@slocumboddie.com

 

On Tue, Apr 12, 2011 at 6:16 PM, Dennis Brewer <xxxxxx@uark.edu> wrote:

Rochelle,

 

We also had to go through subaward process for our general contractor on our ARI-R2 grant.  Sorry we are not much help.

 

Dennis Brewer

Associate Vice Provost for Research and Economic Development

Director, Office of Research and Sponsored Programs

University of Arkansas

479-575-5624

xxxxxx@uark.edu

 

 

 

 

From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Athey, Rochelle R [VPRED]
Sent: Tuesday, April 12, 2011 11:10 AM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] Can we talk to any institution that has received funding under the NSF Academic Research Infrastructure Program: Recovery and Reinvestment (ARI-R2)

 

Dear colleagues:

 

NSF has decided to consider our construction contracts under this program as subawards, which is quite problematic for many reasons.  Have any of you experienced this problem with this program?  If so, what did you do?  I’ve already notified NSF that we do not believe these agreements are subawards since they do not meet the criteria outlined in A-133, nor do they fit the definition of subaward in the Research Terms and Conditions or in A-110.  NSF is ignoring that message for the moment.  Any thoughts?

 

Thanks,

 

Rochelle R. Athey, CRA
Director
Office of Sponsored Programs Administration
Iowa State University
1138 Pearson Hall
Ames Iowa 50011-2207
Phone:  515-294-7723
Fax:  515-294-8000

 

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