A subaward to a for-profit should differ little from one to a
non-profit.  A couple of things to check out or do:

1)  Quickly review  __.40 - __.49 of A-110

2)  Maybe get a DUNS report on the business, unless your NIJ grants officer
tells you it is unnecessary.  Be sure your award specifies THIS company, or
you will have to consider competitive procurement.  CONSIDER A PROCUREMENT
RATHER THAN A SUBAWARD (because your procurement people are used to working
with for-profits; for that matter pick their brains anyway) -- but it
sounds like subaward may be the only option because of the way your prime
award is made.

3)  be very sure NIJ knows and approves any "fee" (profit) in the
budget.  Do not under any condition issue a "cost plus %-of-cost fee"
subcontract .  Cost plus fixed fee is best, fixed price is next
best.  Specify FAR Part 31 for cost principles
http://www.gsa.gov/far/90-37/html/31.html
Get company to document if/when they have made a cost principles disclosure
(the su - may be too small to require a disclosure for this one award).
Make REIMBURSEMENT payments; maybe base them on milestone completions;
withhold last payment INCLUDING FEE until final deliverable is received and
approved.

4)  Include a couple of clauses to protect your institution, such as
indemnification or requirement of adequate insurance; commitment to repay
any costs disallowed to you, the prime -- remember, you insulate the sub
from the sponsor, you're responsible for them so CYA!

5)  Make a fast review of flow-downs from your own award.  Off the top of
my head I do not think of any that you'd usually flow down to any
non-profit subawardee that need change for a for-profit, other than in the
arena of costs.

6)  If the company tries to get its lawyers involved in the agreement,
watch out.  Their job is rto protect their company at all times, and they
love to insert we-win-you-loose clauses.

ENJOY!!

Chuck

At 08:09 AM 8/23/00 -0400, you wrote:
>I have a unique situation (I think) and was hoping someone on the listserv
>has had some experience with it.  We have a cooperative agreement from the
>National Institute of Justice (NIJ) and it includes a subcontract to a
>FOR-PROFIT engineering firm.  Has anyone had a similar situation?  Does
>anyone have a sample of a subcontract agreement that would cover this
>arrangement?  I would appreciate any guidance from listserv
>members.  Please feel free to contact me directly.
>
>Richard Chiriatti, CRA
>Senior Grants Administrator
>Office of Research Grants and Budgets
>Whitehead Institute for Biomedical Research
>5 Cambridge Center, Room 627
>Cambridge, MA  02142-1493
>Phone: (617) 258-5018
>Fax: (617) 258-5121
>E-mail: xxxxxx@wi.mit.edu
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
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