A-122 states that "all cost reimbursement subawards are subject to those
Federal cost principles applicable to the particular organization concerned.
Thus, if a subaward is to a nonprofit organization, [A-122] shall apply; if
a subaward is to a commercial organization, the cost principles applicable
to commercial concerns shall apply; if a subaward is to a college or
university, Circular A-21 shall apply; if a subaward is to a State, local or
federally recognized Indian tribal government, Circular 74-4 shall apply."

This all makes perfect sense to me. What I don't know, however, is if this
applies the other way around.  That is, does A-21 say the same thing with
respect to subaward flow downs?  Does Circular 74-4 say the same thing?

The reason I'm asking is this:  We have received a couple of draft
"Subcontracts" from commercial organizations that have received primary
contracts from federal agencies, and they list pages and pages of FAR
clauses that are incorporated by reference into the proposed subawards.
They are strictly cost-reimbursement subcontracts.  We are a non-profit
organization.  Shouldn't they be flowing down A-122 regulations, or am I
just wishing upon a star?

Thanks in advance for your help,

Lesley Cephas
Institute for Sustainable Communities (ISC)
56 College Street
Montpelier, VT  05602