1. Subcontracts University of Washington School of Nursing (SON) Enhancing Research Methods: An Invited Conference 9.15.06

2. University of Washington SUBCONTRACTS Presenter: Michael J. Blackwell Subcontract Administrator Office of Sponsored Programs

3. SON - S U B C O N T R A C T S Through this workshop, you will learn… What a Subcontract is and how it differs from a Purchase Order for goods and services; The proposal requirements for including a Subcontractor; How to transfer the funds to the Subcontractor; and The procedures for closing out a Subcontract.

4. SON - S U B C O N T R A C T S I. Background, Definition, and Budget Format II. Responsibilities of the UW PI and Various Offices III. Subcontracts to the UW from Another Institution IV. Case Study/Discuss Handout V. Questions or Need More Help?

5. SON - S U B C O N T R A C T S I. Background, Definition, and Budget Format

6. Background From fiscal year 2000 to 2005, the growth in dollars of UW issued subcontracts has been 140%. During the same period, overall sponsored awards grew by 53% at UW. This is part of a larger national trend by Federal sponsors to encourage cross- disciplinary collaborative research, e.g., in RFAs or RFPs. SON - S U B C O N T R A C T S Background, Definition, and Budget Format

7. Definition Characteristics indicative of a Federal award received by a subrecipient are when the organization: Determines who is eligible to receive what Federal financial assistance; Has its performance measured against whether the objectives of the Federal program are met; Has a responsibility for programmatic decision making; Has responsibility for adherence to applicable Federal program compliance requirements; and Uses the Federal funds to carry out a program of the organization as compared to providing goods or services for a program of the pass- through entity.

8. SON - S U B C O N T R A C T S Background, Definition, and Budget Format Definition Characteristics indicative of a payment for goods and services received by a vendor are when the organization: Provides the goods and services within normal business operations; Provides similar goods of services to many different purchasers; Operates in a competitive environment; Provides goods or services that are ancillary to the operation of the Federal program; and Is not subject to compliance requirements of the Federal program.

9. Budget Format A.Salaries$100 K B.Benefits$ 22 K C.Supplies$ 5 K D.Subcontract (MIT)$ 35 K E.Other$ 5 K F.Subtotal DC=$167 K G.Subtotal IDC@55.5% MTDC=$87.14 K H.GRAND TOTAL=$254.14 K SON - S U B C O N T R A C T S Background, Definition, and Budget Format

10. SON - S U B C O N T R A C T S II. Responsibilities of the UW PI and Various Offices

11. Proposal Stage: When, as a PI, you select one or more Subcontractors, be sure to get a signed proposal (at a minimum, work scope and detailed budget). Encourage use of prime sponsor forms by the Subcontractor, e.g., NIH 398. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

12. This Subcontract proposal is then folded into the UW proposal for transmittal through UW channels and on to the sponsor. The first $25K is subject to UW IDC, unless the standard rate is not allowed by the sponsor. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

13. Award Stage: When the award, including the proposed Subcontract, is made to the UW, a Budget No. is assigned by Grant and Contract Accounting (GCA) and the PI notified. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

14. To avoid unnecessary delays, the PI or designated staff person in the local UW department must:  immediately enter an on-line Purchase Requisition (PR) in the amount of the Subcontract,  which is then directed via Purchasing to OSP,  where the Subcontract, including all applicable conditions, is prepared. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

15. Subcontract Preparation: OSP’s Subcontract Administrator will use a standard template of general conditions (see OSP web site) and add the special “flowdown conditions” from the prime sponsor. The Subcontractor will be contacted for review and confirmation of all terms, especially the budget (cost and price analysis) and the need for an audit report. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

16. Execution, Mailing, Distribution, and Encumbrance: Purchasing and Payables Administration. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

17. Once signed by the Director of UW Purchasing and Stores, sent and returned signed by the Subcontractor, it is at this point that the funds are encumbered in ordered status so that invoices from the Subcontractor may be received and approved for payment. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

18. Invoice or Voucher Review and Approval: Subcontractor submits invoices at least quarterly, not more frequently than monthly, to Payables Administration (PA). PA coordinates with PI and department staff on approval of invoices, then authorization is granted back to PA for check issuance. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

19. Close-out:  Reminder memo sent to UW PI by Subcontract Administrator 30 days following termination or expiration.  Final technical report due within 30 days following termination. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

20. Close-out:  Final invoice due within 60 days following termination.  Other items, e.g., intellectual property or equipment disposition or Exhibit D Close Out Certification. SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

21. Renewals or Modifications: If the PI, under the prime award, receives a new Budget No., do a new PR. If the existing Budget No. is used to continue the research program, just send a request in writing/e-mail to the OSP Subcontract Administrator. PIs are not authorized to amend Subcontract terms (see Article VI). SON - S U B C O N T R A C T S Responsibilities of the UW PI and Various Offices

22. SON – SUBCONTRACTS FIVE MOST COMMON DELAYS * UW PI or staff obtain budget number from UW GCA but fail to initiate a new Purchase Requisition (object code 03- 62) in PAS. This is the most common reason for delays. * The amount on the Purchase Requisition doesn’t match the amount to be awarded to the Contractor. * The Contractor’s proposal doesn’t contain a work scope and/or adequate budget justification. * There is no official Contractor proposal in the UW proposal that was funded, nor is there one “after the fact.” * Obtaining prime sponsor approval—can take as long as 30 – 60 days to obtain w/ certain sponsors.

23. SON - S U B C O N T R A C T S III. Subcontracts to the UW from Another Institution

24. SON - S U B C O N T R A C T S Subcontracts to the UW from Another Institution Members of the faculty are sometimes invited by colleagues at other institutions to participate in research and other sponsored programs.

25. SON - S U B C O N T R A C T S Subcontracts to the UW from Another Institution Faculty member should prepare and submit, through regular UW channels, a proposal with Form eGC-1 outlining the extent of participation and funding and facilities commitment necessary to carry out the participation.

26. SON - S U B C O N T R A C T S Subcontracts to the UW from Another Institution This will provide an opportunity for the same type of review given proposals going to primary funding sources, and will assure the awardee institution of official UW approval of the proposed collaboration.

27. SON - S U B C O N T R A C T S IV. Case Study Discuss handout

28. SON - S U B C O N T R A C T S V. Questions or Need More Help?

29. SON - S U B C O N T R A C T S Questions or Need More Help? Questions concerning subcontracting for sponsored programs should be directed to: Michael J. Blackwell Subcontract Administrator Office of Sponsored Programs 206-543-4043 mikeb@u.washington.edu

30. SON – SUBCONTRACTS Questions or Need More Help? Questions concerning how to process invoices and payments to Contractors should be directed to: PAYABLES ADMINISTRATON Customer Inquiries 206-543-4500 aphelp@u.washington.edu (Must have the Subcontract No. to contact this office.)

31. Questions concerning subcontracting using gift and state budgets should be directed to: Debbie Carter Assistant to the Director and Client Support Manager of Subcontracts, Purchasing and Stores 206-543-5823 ddcarter@u.washington.edu SON - S U B C O N T R A C T S Questions or Need More Help?