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")
======================================================================