A subcontract (subaward or subagreement) is a document written under the authority of, and consistent with the terms and conditions of, a prime award. The subcontract transfers a portion of the research, service and funding of the prime award to another institution or organization.
Subcontracts are often awarded when two faculty members from different insitutions work together on a grant-funded project. The lead PI originates the award, and if faculty at other institutions will be performing substantial effort toward the project and will receive part of the award, a subcontract is established.
The ORSP coordinates any subcontracting process that involves LMU faculty, both when the LMU faculty member is the lead, and when an LMU faculty member is assisting in project effort. When LMU is the lead, the following documents must be received in order to put the subcontract into play, often BEFORE the proposal is submitted:
1. Curriculum Vitae
2. Budget Depending on the guidelines, most subcontractors will need a separate budget to insert into the proposal. Subcontracting budgets should reflect the home institution’s Fringe Benefit rate and Federally Negotiated Indirect Cost Rate (if applicable). Subcontractors should check with their Sponsored Projects Officer to submit their own internally approval documents.
3. Scope of Work A brief overview of the part played by the subcontractor. What substantive parts of the project will they be working on? List any timetables or deliverables they will be required to meet. This may be a brief synopsis of what is written in the narrative.
4. Current and Pending Support Obtain subcontractor’s current and pending support if required by funding agency.
5. Institutional Letter of Commitment The letter of commitment should be from subcontractor’s Sponsored Projects Office or appropriate Authorized Representative of the Institution. The letter should acknowledge the subcontractor’s participation in the proposed project, indicate an understanding of the proposed scope of work, certify the budget is appropriately calculated and indicate their willingness to subcontract with LMU if the proposal is funded. It should be addressed to the LMU Office for Research and Sponsored Projects.
6. F&A Agreement
Each institution has a specific Facilities & Administration (F&A) agreement with the federal government. Subcontracting institutions follow their own F&A agreement if such funding is available through the grant. For more information on the LMU F&A Agreement, please see the Policy and Compliance page.
When another institution is the lead, the LMU faculty member should request a list of materials required by the primary institution early in the process and provide them to the ORSP to ensure that all conditions for the project are met.