I want to echo Ruth's sentiment!! Kaaren Downey Ruth Tallman <xxxxxx@LEHIGH.EDU> on 06/08/2000 07:33:58 AM Please respond to Research Administration Discussion List <xxxxxx@hrinet.org> To: xxxxxx@HRINET.ORG cc: (bcc: Kaaren Downey/Medadmin/Washington University) Subject: Re: Audit Requriement for Subrecipient Todd, Thank you for your advise and research in response to Leah's query (I've printed it for my file for the next time I draw a blank when faced with a similar situation). I am writing to remark about your P.S.: "Researched and posted at 8:13 PM CST - Not on Government Time or Dime." Maybe you are ONR and this was a DOE question, but I find it EXTREMELY valuable to have the input of professionals from the agencies on this discussion group and I would never object to anyone using government time to interact and dessiminate information with your "customers"! I sure hope your supervisors feel the same! Ruth Tallman "Frye, Todd" wrote: > There are no easy answers to your questions, but here are some important > points to consider: > > 1. Since you use the term, "agreement", I will assume you mean that the > prime award to Tulsa is an assistance instrument of some type, such as a > cooperative agreement or grant, vs. a procurement contract. This assumption > points us towards one likely solution path, vs. the one we would take under > a procurement contract. > > 2. What do the DoE Prime award specific terms and conditions say about the > handling of subcontracts to commercial concerns? Also, take a look at the > DoE General Assistance Terms and Conditions at > http://www.pr.doe.gov/gf3tc.html, specifically referencing contract and > subaward/subgrant flowdown provisions, with hypertext links to other > subparts and appendices that address the question of flowdowns more fully. > In short, they invoke Subpart C of 10 CFR 600, which states, > > "10 CFR 600.104 Subawards. > Unless sections of this subpart specifically exclude subrecipients from > coverage, all DOE recipients, including State, local and Indian tribal > governments, shall apply the provisions of this subpart to subrecipients > performing work under awards if such subrecipients are institutions of > higher education, hospitals, other non-profit organizations or commercial > organizations. Thus, this subpart is applicable to those types of > organizations regardless of the type of recipient receiving the primary > award. State and local government subrecipients are subject to the > provisions of 10 CFR part 600, subpart C, ``Uniform Administrative > Requirements for Grants and Cooperative Agreements to State and Local > Governments.'' > > 3. Also, you should take a look at 10 CFR 600.126, entitled, "Non-Federal > audits", which gives DoE Prime assistance recipients the specific authority > to seek audits of subs in order to protect the interests of the project, the > prime, and DoE > > 4. You don't really say in the sub-award to the commercial concern is for a > shared part of the technical work, (i.e, a true "subrecipient" relationship) > or merely the procurment of related items required by the prime (i.e, vendor > relationship). This distinction is critical for governing the appropriate > Federal flowdowns and audit issues. More on this subject is found in the > discussion of subrecipients vs. vendors at OMB Circular A-133, at > http://www.whitehouse.gov/OMB/circulars/a133/a133.html#b . Scroll down to > "§___.210 Subrecipient and vendor determinations." > > 5. If the commercial concern sub has any intention of getting into > Federally funded research, even as a subcontractor, it would do well to > contact the DoE Small Business people, and get ramped up and get "all its > vacinations" to become a Federal recipient, subrecipient, or > contractor/subcontractor. Good information about getting started with DoE > as a small business is found at > http://www.er.doe.gov/production/grants/grants.html#SBIR > > 6. If, on the other hand, they are already in reciept of Federal awards or > functioning as a subcontractor, they may already have a cognizant Defense > Contract Audit Agency (DCAA) nearby that oversees their work. DCAA has > agreements with other agencies to do audits for them, as well as normal DoD > Agencies. In this case, they should "know better" than to expect that a $1M > subaward would carry no expectation of closeout audit of some type. > > 7. Item the Last: Partner early and often with your Prime DoE > Grants/Contracting Professionals, and seek guidance from them in writing for > open issues pertaining to all project obstacles, not just the subcontract > costs. Also, was the subcontract approved as part of the pre-award proposal > submitted to DoE by Tulsa? If so, then the subaward can rightly be > considered a "government directed" subcontract or subaward, and more > programmatic and cost type oversight would be appropriate by the DoE at that > point. That is in keeping with the nature of cooperative agreements, which > envision a more developed involvement of the issuing agency. > > 8. Sorry to be so long winded. You ask for the time, I tell you how to > build a watch. . . . > > Good Luck! > > Todd > > Todd A. Frye, Deputy Regional Director > ONR CHICAGO > > 312 886-5423, ext. 237 > xxxxxx@onr.navy.mil > > P.S. Researched and posted at 8:13 PM CST - Not on Government Time or Dime. > > -----Original Message----- > From: Leah Bevan [mailto:xxxxxx@UTULSA.EDU] > Sent: Wednesday, June 07, 2000 4:41 PM > To: xxxxxx@HRINET.ORG > Subject: Audit Requriement for Subrecipient > > I am working on a subcontract for a private company which will be issued > under a prime agreement with DOE. I understand that all the requirements > of the prime flow down to any subrecipient. We as the recipient of the > prime require subcontractors to provide us with annual audit reports. > > Since the subcontractor is a private company and not subject to audit they > of course do not want to provide a copy. Over the first budget period (two > years), their budget will be $1,118,890 which to me is substantial. > > Can anyone shine a little light for me? Is there policy/regulations or > anything in writing I can reference here dealing with small private > companies and audits? > > Thanks for any help, > Leah Bevan > Coordinator of Grants and Contracts > The University of Tulsa > 600 South College Avenue > Tulsa, Oklahoma 74104 > (918) 631-2883 > Fax: (918) 631-2073 > > ====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") > ====================================================================== > > ====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") > ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================
