I have some additional questions on sub contracting:

1. With the new requirement for subcontractors to have a DUNS, is
there any accomodation for foreign sub awards?

2. Because most foreign sub awards don't have A-133 audits, is there
anything that others typically rely on when making a award?  Would
anyone else rely on the fact that the sub award has an annual audit
that complies with International Accounting Standards?  Do you have
any specific terms and conditions you apply to foreign sub awards,
e.g., sending back up with invoices?

3. We are getting push back on flowing down FAR clauses?  Is there any
way to say the sub award has substantially similar practices?

Thanks,

Mary Kate De Marco
University of Rhode Island

On Jan 20, 2011, at 10:46 PM, Hudobenko,Paul F. wrote:

> Yes, it is permissible providing that the circumstances warrant it.
> We have occasionally been the lead institution and had both second
> and third tier subcontracts. The specific instances that come to
> mind involved
> substantial work in foreign countries where it was in everyone's
> best interest for a foreign institution (second tier) to be the
> coordinator of third tier subcontracts with other agencies in that
> country. This made sense both
> from a programmatic standpoint and  in some cases for legal
> requirements.
>
> I'm not sure if it is still the case but a few years ago some of the
> countries that made up the former Soviet Union had laws that treated
> grant funds as taxable. In these cases we had to use  an agency that
> was approved both by the US government and the foreign government in
> order to transfer the funds without having a government tax of 25%
> or more placed on the payments. These were not indirect costs but
> taxes that would have been taken directly by the government. The
> second tier subcontractor had a security status with the foreign
> countries that allowed for work and information to flow much more
> freely than it would have without their involvement.
>
> We've also had subcontracts with universities and social services
> agencies in India where the Indian site was in a far better position
> to monitor and oversee the work done at third tier subcontractors in
> that country.
>
> In all cases, these relationships were disclosed to and approved by
> NIH prior to our entering into them.
>
> Paul Hudobenko, CRA
> University of Connecticut Health Center
> xxxxxx@adp.uchc.edu
>
>
> ________________________________________
> From: Research Administration List [xxxxxx@hrinet.org] On Behalf
> Of Kris Wolff [xxxxxx@FORDHAM.EDU]
> Sent: Thursday, January 20, 2011 4:53 PM
> To: xxxxxx@hrinet.org
> Subject: Re: [RESADM-L] Question on Subcontracting
>
> We’re currently a third tier subcontractor on an NIH grant – went to
> a hospital as the prime, who subcontracted to a med school, who
> subcontracted to us.  But keep this in mind: while the med school’s
> indirect costs were not counted into the hospital’s direct costs (as
> usual), surprisingly, OUR indirect costs WERE counted into the med
> school’s direct cost.  This put us over the $500K direct cost limit
> without prior authorization, and we had to redo our budget.
>
> -------------------------------------------------------
> Kris Wolff
> 718-817-4086
>
>
> From: Research Administration List [mailto:xxxxxx@hrinet.org] On
> Behalf Of Joelina Peck
> Sent: Thursday, January 20, 2011 3:59 PM
> To: xxxxxx@hrinet.org
> Subject: [RESADM-L] Question on Subcontracting
>
> Hi All,
>
> Is it allowable to budget a third tier subcontract on a NIH
> proposal?    I’m thinking this is not allowable and that the lead
> institution should subcontract to both institutions.  However, I’m
> not able to find any policy or federal regulation that specifically
> says this is not allowable?  I might not be looking in the right
> places. If anyone can lead me to this  information  I would greatly
> appreciate it!
>
> Example:  Lead Institution plans to subcontract to Institution A,
> and then A Institution plans to subcontract to Institution B.
>
>
> Thanks,
>
> Joelina Peck, CRA
> Manager, Sponsored Research
> Sanford-Burnham Medical Research Institute
> 10901 North Torrey Pines Road
> La Jolla, CA  92037
> T: 858.795.5404
> C: 858.926.8791
> F: 858.646.3189
> E: xxxxxx@sanfordburnham.org
>
>
>
> =
> =
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