1. Subaward, Procurement, or Consulting? Herbert B. Chermside, CRA Prepared for Virginia Commonwealth University Grants Administration Training Series © 2003 Herbert B. Chermside

2. Three Ways To Obtain “Services” Subaward –Collaborator Procurement –Provider of services Consulting –Individual Provider of Expert Advice, Services

3. Definition of Subaward, from A-110 Subaward means an award of financial assistance in the form of money, or property in lieu of money, made under an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient. The term includes financial assistance when provided by any legal agreement, even if the agreement is called a contract, but does not include procurement of goods and services.

4. Definition of Consortium Agreement from NIH GPS Consortium Agreement: A collaborative arrangement in support of a research project in which some portion of the programmatic activity is carried out through a formalized agreement between the grantee and one or more other organizations that are separate legal entities administratively independent of the grantee.

5. Definition of Subaward from NSF Grant Policy Manual A significant part of the research or substantive effort… excluding the procurement of items such as commercially available supplies, materials, equipment or general support services.

6. KEY factor for Subaward significant part of the research or project: substantive effort Generally involves active participation in the planning and execution of the project

7. Administration of Subaward Requires prior written permission of the sponsor. If in the proposal, award provides permission. If need arises after award is made, seek permission Proposal treats subaward as a single line item (DC + F&A) in prime’s budget; sub’s budget as detail.

8. Admin. of Subaward Sub’s institutional signatory authority must provide “consortium letter” Acknowledges awareness of arrangement, confirms budget Sometimes makes certain certifications

9. Admin. of Subaward Agreement written by OSPA State procurement has recognized that subaward is not subject to competitive procurement because sponsor’s approval overrides OSPA includes all required regulatory flow-down from our sponsor

10. Subaward Process http://www.research.vcu.edu/forms/su bproc.doc Dept makes special PO (follow instructions) PI/ Dept provide SOW and deliverables OSPA writes and delivers On receipt of contract, OSPA “releases” PO PI review performance before OK payment

11. If VCU is the Sub OSPA provides “consortium letter” to prime with proposal OSPA can prepare a subaward agreement written in the reverse, if our prime is inexperienced

12. Procurement The purchase of goods or services From NIH GPS: A written agreement between a grantee and a third party to acquire routine goods or services Agreement commonly a P.O. May be also individual contract For consultant, I.P.A.

13. Procurement Administration Process through Procurement and Payment. Competitive bidding applies. Single source procurement appropriate only with adequate justification http://www.vcu.edu/procurement/

14. Consulting NIH GPS: An individual 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 services. Consultants also include firms that provide professional advice or services.

15. Consulting NSF GPM: Costs of professional and consultant services rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the performing organization are allowable when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the government.

16. Administration of Consulting Proposal: narrative should provide appropriate rationale; proposal budget should estimate the cost Consulting not anticipated in the proposal may be procured, with appropriate justification

17. Admin. Of Consulting Sponsor may limit on pay rate –NSF GPM: Payment for a consultant’s services may not exceed the daily equivalent of the then current maximum rate paid to an Executive Schedule Level IV Federal employee (exclusive of indirect cost, travel, per diem, clerical services, fringe benefits and supplies), unless specifically authorized by law.

18. Admin. Of Consulting Specialized form of procurement, usually handled at VCU with a “personal services agreement”, but if an organization provides the services, a P.O. or Contract may be used http://www.vcu.edu/procurement/Cha p_7a.pdf

19. Admin. Of Consulting Consulting usually not obtained from individuals within VCU, and never from individuals within the same department Consulting to a VCU award is NOT a way to provide increased pay to a VCU individual –http://www.vcu.edu/finance/finpolicies/sal arysupplements.htm

20. Admin. Of Consulting No individual may be engaged both as an employee and as a consultant on the same sponsored agreement Only part time employee may a consultant another sponsored agreement

21. Which To Use? Subaward –Collaboration, Preplanned Procurement –Service, not Collaboration Consulting –Individual Expert, Not VCU Employee