Consultants and subcontracting


Definition: An individual or firm that provides professional advice or services on the basis of a written agreement for a fee. These individuals are not normally employees of the organization receiving the advice or services.

  • Consultant costs consist of the consultant’s normal daily rate (times number of days), plus any travel and subsistence costs.
  • Compensation should be based on the consultant's rate history for comparable services. Refer to the funding agency guidelines for caps on consultant rates.
  • Consultants do not receive fringe benefits and are not provided with supplies, administrative support or other standard business items.


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

  • The subcontract is between the University and the subcontractor entity. The subcontractor must meet all grant requirements that the funding agency imposes upon the prime grantee.
  • The subcontractor should provide a statement of work, budget and documentation of its willingness to participate in the project (usually via a letter from the subcontractor’s authorized representative).
  • N.C. A&T’s appropriate F&A (Indirect Cost) rate is calculated on the first $25,000 of each subcontractor’s total cost.