Missed that second question and maybe the intent of this whole point.

Skipping major/minor subcontracts for a moment, what is the difference between a subcontract and a consultant?  Generally, consultants
are individuals and subcontractors are organizations.  But, Anderson Consulting consults, they usually are not considered a
subcontractor.  Individuals can be subcontractors.  The question revolves around the work being performed.

If your grant or contract specifies work on A, B, C, and D and you decide to have another institution do the work on C, they'd be a
subcontractor.  If what they are doing is advising or testing on workproduct C, they'd be better classified as a consultant rather than
a subcontractor.

Example:  I have an agreement with an aircraft construction company to test airfoils created on campus.  Should they be a
subcontractor?  No, because they do not provide the wings.

If the agreement said that they would build and test the wings under tolerances specified by us, I'd have to say that would be a
subcontract.

If you have a consultants agreement over $25,000, you charge full F&A to the whole lot.  If it's a subcontract, you only get F&A on the
first $25,000 of each one.

I seriously doubt that you'll find a definition of subcontract outside of Black's Law Dictionary.

Cathy Richards - Spon Research wrote:

> Our indirect cost agreement specifies that we can not charge indirect
> costs on the portion of major subcontracts in excess of $25,000.  Am
> looking for a  more specific definition of “major subcontract”.  Have
> referenced A-133 section 210 and found the information to be vague –
> what a surprise.
> Was wondering what others use as criteria for determining whether a
> vendor is considered a major subcontractor or simply a consultant.
>
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--
Greg Schmidt
Manager, Contract & Grant Accounting
Florida A&M University
201 FHAC
Tallahassee, FL  32307-3200

DUNS:  623751831

College of the Year - 1997

voice:   850 561-2956
fax:     850 561-2461

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