No, a vendor agreement doesn’t need the same level of management as a subaward. But yes, it can (and, depending on the nature of the project, possibly should) go through an OSP.

Thank you so much!  So if we do meet the ‘vendor’ classification, you wouldn’t manage the agreement like you would a typical subcontract, correct?  It wouldn’t need to go through an office for sponsored programs?

Ah, OK.

Yes, this happens routinely (and has everywhere I’ve worked in this business). It boils down to whether or not your institution (or the person at your institution associated with the parent project) is truly a research partner (which would argue for treating the award as a subcontract) or whether you’re just providing a service that doesn’t quite rise to the level of research. As we note in our subrecipient policy, the following are characteristics of work that would be considered a subcontract (I’ve summarized a few of the more common ones here; the actual policy includes close to a dozen):

·         The entity is carrying out substantive, programmatic work on behalf of the approved scope of work on a sponsored project;

·         The other entity, or its personnel, participates in a creative way in designing or creating the research program, objectives, or project;

·         The other entity commits to making a good-faith effort to complete the design and/or conduct of the research program or project;

·         The other entity, or its personnel, makes independent decisions about how to implement the assigned activities;

·         A principal investigator has been identified at the other entity, and is designated on, and functions as, a co-investigator, for the overall project or program;

·         There is an expectation that the other entity will retain ownership rights in potentially patentable or copyrightable work;

·         Publications may be created or co-authored by personnel of the other entity

A subaward must have a detailed scope of work that identifies the portions of the larger/broader scope of work that will be performed by the recipient. These are usually related to (or may be explicitly stated as part of) the proposal from the prime recipient.

An entity that is classified as a vendor, on the other hand, doesn’t meet those subrecipient criteria. It is performing a specified service, of a type that it routinely provides, at a set fee or per-unit cost. There’s no expectation that there would be any patentable or copyrightable work arising from the work done, no expectation that personnel would be designated as a PI or co-PI, or author publications. The prime recipient will specify exactly the kinds of work to be done, and often, how to go about it. If the vendor does not perform the specified services within the timeframe allotted, the prime recipient can sue for damages.

Sorry for the confusion, our institution is being classified as a vendor by a pass-through entity on a federal award.  I’ve only ever been at Institutes that we’re truly always subcontractors so never had this situation come up.



I’m not sure I understand the situation. Is your institution being classed as a vendor by a pass-through entity on a federal award? Or are you receiving funds on a federal award and passing them through to another entity/institution/individual who doesn’t meet the criteria as a subrecipient?

 

I’ve seen both, but they are somewhat different circumstances.

 

Michael Spires, M.A., M.S., CRA
(He/him/his)

Research Development Officer

The Research Office

Oakland University

256 Hannah Hall

244 Meadow Brook Road

Rochester, MI 48309-4451

(248) 370-2207

xxxxxx@oakland.edu

Past President, National Organization of Research Development Professionals

 

Oakland University has taken steps to slow the spread of COVID-19. Nevertheless, the Research Office is available to faculty and staff for all the research development, proposal submission, and award management services that we routinely provide; please reach out to us through email (first preference) or phone. 

 

From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> On Behalf Of Albuquerque, Meredith
Sent: Friday, August 21, 2020 15:23
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: [RESADM-L] Vendor vs. Subcontract

 

Hi All –

I’ve never been at an institution where we received federal funds and did not meet the criteria of a true ‘subcontractor’, but more of a vendor type relationship.  Does anyone’s institution have anything similar?  And if so, how do you handle these type of relationships?

 

Meredith Albuquerque

Associate Director of Grant Compliance

Southern New Hampshire University

2500 North River Road

Manchester, NH 03106

(603)644-3129

https://alumni.snhu.edu/operations/grant-resources

 

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