Subaward And Research Services
When a UA Principal Investigator (P.I.) partners with another P.I. to carry out a portion of a project awarded to UAF, Procurement & Contract Services issues a Subaward to the P.I.'s institution or eligible entity to allocate that part of work to the P.I. In this case, the external entity becomes the subrecipient, and the subrecipient P.I. is responsible for the design, conduct, and reporting of the research.
Each subrecipient not only must have requisite policies and procedures in place to manage and ensure responsible use of sponsored funds but also adequate facilities to carry out the work.
This relationship differs from a purchase, service agreement, or a work for hire relationship, in that a subaward is a public assistance agreement in contrast to a procurement or acquisition of goods and services to the benefit of the procurer. There are significant impacts to a project budget if costs are not budgeted correctly at the proposal stage given that UA’s indirect cost rate is calculated only on the first $25,000 of each subaward, but on the total amount a procurement in a vendor relationship.
Improper determinations of relationships with external entities could lead to disallowed costs, more frequent audits, or perhaps even the loss of a sponsored project.