When I read that section of the UG, I remembered my experience with final invoicing in a sub-to-a-sub relationship, and how unmanageable that became with final deadlines when we had a sub to a sub to a sub.  If they are prime, however, then aren’t you the first tier?

If they have a lot of subs then they might also just be taking advantage of how contracting terms and conditions with procurement can be easier compared to subawards.

Different agencies also differently interpret lower tier relationships.  NIAID had this advice last year . . .

“A subaward is not always the optimal solution . . .

“Finally, imagine you are a subawardee on another investigator’s NIAID grant. You have your own subaward budget under the grant and you want to arrange for Private College to carry out a research task using money from your subaward's budget. Under NIAID policy, that is not allowed. While you can have a fee-for-service for a specific purchase on a subaward, a third tier subaward removes the grantee’s ability to oversee and control the grant activities.”

https://www.niaid.nih.gov/grants-contracts/refresher-subawar

Doug Mounce, Grants & Contracts Manager

________________________________________
From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> on behalf of Hurley, Susan <xxxxxx@SHSU.EDU>
Sent: Friday, August 30, 2019 8:32 AM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: [RESADM-L] FW: [RESADM-L] Can a sponsor dictate whether funds are used as a subcontract or a procurement contract?

Hi Kristin

I wish that were the case, but based on our conversations, it is more complicated than that. They understand the difference and are insisting on a procurement contract.  They even cited the Uniform Guidance guidelines in their documentation, saying that only one subreceipient can be awarded and that be them , as the Prime awardee.  It is an odd situation.

Susan

From: Cox, Kristin <xxxxxx@psu.edu>
Sent: Friday, August 30, 2019 10:24 AM
To: Hurley, Susan <xxxxxx@shsu.edu>
Subject: FW: [RESADM-L] Can a sponsor dictate whether funds are used as a subcontract or a procurement contract?

Susan – Could this just be an issue of semantics?

Sometimes IHE think “subaward” as a catchall phrase for any subrecipient-type agreement. But, the difference between a subaward and a subcontract is the award type (grant vs. contract) and both are still “subs.”

Forgive me if you already have that figured out and I’m being pedantic. Just thought I’d throw it out there.

From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>> On Behalf Of Janet Holmberg
Sent: Friday, August 30, 2019 11:14 AM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>
Subject: Re: [RESADM-L] Can a sponsor dictate whether funds are used as a subcontract or a procurement contract?

Good morning
Sometimes I think it is lack of understanding on the sponsor's part.  My organization has been a proposed subawardee on a couple of NIH grants that were awarded to a national lab.  Instead of issuing a subaward to us they have provided money as a procurement, through a purchase order.  That has  led to some issues and so far we have gotten around them, but it makes things difficult.  They ask us questions about things like salaries confirming with the Service Act and discount for prompt payment while doing their analysis of the cost competitiveness of the proposed amount, which really don't apply to grants.    The people I've worked with seem perplexed by the idea of a cost-reimbursable subaward with a ceiling price and flexibility in the spending as long as the ceiling is met.   If there is any way you can convince that subawards should be issued and handled differently than procurements it will be better for both of you in the end.
janet

On Fri, Aug 30, 2019 at 7:33 AM McKerrow, Maegan <xxxxxx@shsu.edu<mailto:xxxxxx@shsu.edu>> wrote:
Good morning,

Can a sponsor dictate whether funds are used as a subcontract or a procurement contract?  We have a grant from one of our state agencies that was awarded to them from Department of Education.  They are stating that we can’t have any subawards on our funding.  Everything must be done as a procurement contract.  However, based on the scope of work for the agencies that we are working with, they are clearly subawardees and that is how the award was negotiated. Now they are insisting that procurement contracts are the only way funding can occur. We have approximately 8 other agencies that we consider subawardees on this project.  Any guidance you can provide would be beneficial.

Thank you,

Susan Hurley, MBA, CRA
Research Administration Manager
SHSU ~ Office of Research Administration
PO Box 2392
Thomason Building, Suite 301
1831 University Ave.
Huntsville, TX 77341-2392
xxxxxx@shsu.edu<mailto:xxxxxx@shsu.edu>
Phone:  936-294-4862
Fax:  936-294-3344
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The Mind Research Network
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