Valerie:

This is a problem I've fought for several years.  Some say that if you have
a contract document, you should treat it as a subcontract.  Others say if
it's to a company, it's a contract.  Some tag a dollar amount as the
criteria.

The only valid definition I've found is if part of the work for which you
have been given an award is being performed by a non-employee or
organization regardless of value, it's a sub.

We had an award with the Air Force to do airfoil design studies (wings).  We
designed the wings, but had a contract with an aircraft manufacturer to
build the wing from our design and do wind tunnel tests.  We wrote a
contract, and coded it as services.  They were supporting us, not doing the
statement of work.

We have another contract with the state to gather and disseminate
architectural information concerning energy and environmental issues in
housing design.  An Other Personal (peasant) Services contract was issued to
an individual for a few thousand dollars to create, maintain and publicize a
web page containing information, and solicit submissions from other
architects.  That was coded as a sub.  This person was doing part of the
statement of work.

It's all in the wording.

Greg Schmidt

-----Original Message-----
From: Valerie Seaquist <xxxxxx@EMAIL.UAH.EDU>
To: xxxxxx@hrinet.org <xxxxxx@hrinet.org>
Date: Thursday, December 02, 1999 4:48 PM

>        I believe that we all agree that F&A (indirect) should be charged
only to
>the first $25K of a subcontract issued under a contract or grant. I'm
>curious as to how other universities would handle the following situation:
>
>        A university purchase order is issued (from a contract/grant
account) to a
>company/individual/whatever in an amount greater than $25K for something
>such as computer lab. maintenance, calibration of equipment, machining of
>parts. (This is just a regular requisition = purchase order situation not a
>university subcontract under a prime with university T&C's and prime
>flow-down clauses.) Should we charge indirect on only the first $25K of
this
>purchase order amount? If so, are we saying that this purchase order is a
>subcontract? If not, why not?
>
>As always, thank you for your input.
>
>Val Seaquist
>Office of Research Administration
>The University of Alabama in Huntsville
>256-890-6000 x 228
>256-890-6677 (fax)
>xxxxxx@email.uah.edu
>
>
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