We also put the (FAR) clause in agreements with commercial organizations.

____________________________________________
Marie F. Smith
Manager of Grants Administration
Institution of Ecosystem Studies
PO Box AB, Route 44A
Millbrook, NY 12545
(845) 677-5343 (phone)
(845) 677-7508 (direct)
(845) 677 5976 (fax)
xxxxxx@ecostudies.org

"The Constitution only gives people the right to pursue happiness. You have
to catch it yourself."

-----Original Message-----
From: Stephen Erickson [mailto:xxxxxx@BC.EDU]
Sent: Thursday, June 08, 2000 11:30 AM
To: xxxxxx@HRINET.ORG
Subject: Re: Audit Requriement for Subrecipient

This is really a neat way of getting at the audit requirement. I don't
usually like
putting FAR terms in the document if the subcontract is under a prime grant
or
cooperative agreement, but sometimes it's all you can do . Good suggestion.

Steve

Nancy Stewart wrote:

> Hi Leah,
>
> I didn't see your original post and think Steve's idea is a good one.  I
recently
> was in the same situation and tried for language quite similar to his.
The
> company however wanted something "more specific."  After speaking with
contract
> officer at NIH (this was a prime NIH contract) and several other RA's  I
came up
> with the following:
>
> The SUBCONTRACTOR certifies that it shall comply with FAR 31 Contract Cost
> Principles and Procedures, Subpart 2:  Contracts with Commercial
Organizations
> with modifications as follows:  the term "Contract" shall mean
"Subcontract";
> "Contractor" shall mean "Subcontractor"; "Authorized Contracting Officer"
shall
> mean "UNIVERSITY's Contracting Officer"; "U.S. Government" shall mean
"UNIVERSITY"
> except that the terms "Authorized Contracting Officer" and "U.S.
Government" shall
> retain their meaning relative to audits of costs, negotiation of overhead
rates,
> and inspections.
>
> The company was satisfied with this; however they do have experience in
> contracting directly with feds so are comfortable with FAR's etc.
>
> If anyone sees any gap or problem with the language, please let me know.
Thanks.
>
> Nancy
>
> Stephen Erickson wrote:
>
> > Leah,
> >
> > I don't know of any provision that exempts private companies from
audit....if
> > so I am petitioning to change Boston College to Boston College Corp.
> > Seriously, the company, like all federal awardees, is subject to audit
(at
> > least under subgrants or cost-reimbursement subcontracts), but it is not
> > subject to the audit requirements of A-133.  I would simply insert a
clause in
> > the subcontract saying that the subcontractor agrees to cooperate with
an
> > audit of subcontract related books and records required by your
institution or
> > the federal government, and that such audits may talke place at any time
> > during period of performance or within three years after your
institution's
> > submission of it's final financial report.
> >
> > As a general matter (and I don;t know whether  you prime award is a
grant or a
> > contract) you should make sure that the clauses and provisions you flow
down
> > are those designated for commercial organizations and not those for
> > educational or non-profit organizations.
> >
> > Please feel free to contact directly if you have any questions about
specific
> > clauses.
> >
> > Steve
> >
> > Leah Bevan wrote:
> >
> > > 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")
> > > ======================================================================
> >
> > --
> > Stephen Erickson
> > Director, Office of Research Administration
> > Boston College
> > McGuinn Hall 600
> > Chestnut Hill, MA 02467
> > Telephone:  617-552-3344
> > On-Campus Fax:  617-552-0747
> > Fax to My Computer: 413-895-8328
> >
> > ======================================================================
> >  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")
> > ======================================================================
>
> --
> Nancy E. Stewart
> Fiscal Administrator
> Office of Grant and Contract Administration
> 408 Goodell Building
> University of Massachusetts
> Amherst, MA 01003
> (413) 577-1591
> (413) 577-1595 FAX
> http://www.umass.edu/research/ogca
>
> ======================================================================
>  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")
> ======================================================================

--
Stephen Erickson
Director, Office of Research Administration
Boston College
McGuinn Hall 600
Chestnut Hill, MA 02467
Telephone:  617-552-3344
On-Campus Fax:  617-552-0747
Fax to My Computer: 413-895-8328

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