Subcontracting

PURPOSE

The purpose of this statement is to provide general guidelines and applicable procedures for subcontracting.

GENERAL GUIDELINES/APPLICABLE POLICIES

Subcontracting is the transfer of a significant portion of work on a sponsored agreement to a third party. Subcontracting requires agency approval and is usually identified in the proposal.

PROCEDURES

Approved Subcontractors: Those identified in the budget of a funded sponsored program award.

  • Principal Investigator/Project Director works with the Post Awards Officer in the Division of Research to develop a subcontract.

  • Subcontract is submitted to the awardee for approval.

  • A copy of the completely executed subcontract is distributed to the Project Director requesting that a purchase order be submitted.

  • The Principal Investigator/Project Director will submit a purchase request for the amount of the award charged to object code 1995.

  • The awardee will submit invoices in accordance to the terms and conditions of the award.

  • The invoices will be forwarded to the Principal Investigator/Project Director for approval.

  • Invoices forwarded to Principal Investigators/Project Directors should be reviewed, approved and returned promptly.

  • If there is a reason that payment should be withheld from a subcontractor the Principal Investigator should notify the subcontractor and the Office of Contracts and Grants.

  • Approved invoices will be returned to the Contracts and Grants accountant for submission to Accounts Payable for payment.

  • If there are serious issues that need to be resolved before payment can be made, the matter will be discussed with the Director of Contracts and Grants and the Vice Chancellor for Research or her designee.

  • At no time should payment be withheld without sufficient discussion and documentation.

Unapproved Subcontractors: Those not specifically identified in the approved award budgets:

  • Principal Investigators/Project Directors must contact the Post Awards Officer in the Division of Research to determine if the request to work with or engage the services of a third party constitutes subcontracting.

  • If it is determined that the request is for subcontracting, the Post Awards Officer will submit a written request to the sponsoring agency for approval of the subcontractor.

  • If agency approval is received the steps identified in Approved Subcontractors above will be followed.

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