create presented by: marcy friedle, grants compliance analyst
TRANSCRIPT
CReATEPresented by: Marcy Friedle, Grants Compliance Analyst
What Is a Subcontract?What Is a Subcontract? Assigning to another party some obligation of
an existing contract, for which FSU is still ultimately responsible
Used for research collaborations or in cases where FSU does not have the resources or expertise to perform the work internally
FSU generally requires bilateral agreements (i.e., signed by both parties)
A purchase order in which subcontractor is subject only to FSU’s purchasing terms and conditions may be allowed in limited cases
PRINCIPAL INVESTIGATOR
GRANTS ADMINISTRATOR
SRS SUBCONTRACT
COORDINATOR
SRAS SUBCONTRACTTEAM
SRS
FSU Subcontract TeamFSU Subcontract Team
Basic Subcontracting StagesBasic Subcontracting Stages Pre-Award/Proposal: SRS submits
proposal on behalf of PI
Award: After prime award received, PI requests subcontract and works with SRS Subcontracts Coordinator to issue it
Post-Award: SRAS pays invoices and monitors subrecipient for compliance with A-133 audit requirements
Close-out
Ideally, the PI will identify the need for a subcontract at the proposal stage
If > 50% of award being subcontracted out, approval from Vice President for Research required
Inclusion of subcontract in proposal budget that gets awarded as proposed should serve as sponsor approval, unless specific post-award approval or approval of the actual subcontract document is required
SRS will make subrecipient versus vendor determination in order to determine FSU’s correct indirect cost base
Pre-Award/Proposal StagePre-Award/Proposal Stage
What is the difference between a subrecipient and
a vendor?Why do we care?
Has responsibility for programmatic decision-making
Uses the funds to play an integral role in the contracted research program, as opposed to only providing goods or services to FSU
Performance is measured against the objectives of the award
Has responsibility to comply with all applicable federal program requirements
Subrecipient FactorsSubrecipient Factors
Provides the goods or services within its normal business operations
Provides similar goods or services to many different purchasers
Operates in a competitive environment
Is responsible ONLY for meeting requirements of contractual services to FSU, not integral to programmatic work
Vendor FactorsVendor Factors
Subrecipient vs. VendorSubrecipient vs. Vendor This determination will affect the calculation of
indirect costs – only the first $25,000 of a subcontract with a subrecipient is included in MTDC base
The entire amount of a subcontract with a vendor is included in MTDC base
Result: Lower indirect costs for subcontracts > $25,000 when subcontractor is a subrecipient
PI obtains from proposed subcontractor: Budget Scope of Work Commitment Letter Other items as required by sponsor (e.g., biographical
sketches)
SRS Grants Compliance Analyst reviews budget for the following: Mathematical accuracy Compliance with sponsor’s requirements To ensure that proposed subcontractor’s costs have been
included in FSU’s proposal budget correctly (e.g., only the first $25,000 of each subcontract with a subrecipient included in MTDC base)
Pre-Award/Proposal StagePre-Award/Proposal Stage
Award Stage – PI ResponsibilitiesAward Stage – PI Responsibilities
PI sends the following items to SRS Subcontracts Coordinator:
Required: Subcontract Request Form Subcontractor’s Scope of Work and Budget Subcontractor’s Contact Information Schedule of Deliverables and Payments
Other: Special Certifications (e.g., human subjects, animal
subjects) Sponsored Research Exemption Request(s) Cost/Price Analysis
Sponsored Research ExemptionsSponsored Research Exemptions SRE – Travel
Applicable to subcontracts with out-of-state entities who are unable to agree to using Florida travel regulations, or with entities located in Florida who have their own travel policies
Available only for awards with non-state funds SRE – Competitive Bidding
Required for any subcontract > $50,000 with a non-university subcontractor who is not named specifically in the prime award
Sponsored Research Exemptions are approved by Betty Southard, Office of Research Legal Counsel
Cost/Price AnalysisCost/Price Analysis
Required for any subcontract > $6,000 Used to determine whether the rate being
charged by the subcontractor is fair and reasonable
Check that the rate is comparable to the rate normally charged by the subcontractor or to the rate of others who do similar work
PI should complete the Cost and Price Analysis Worksheet and return to SRS Subcontracts Coordinator for approval
Cost/Price Analysis, cont.Cost/Price Analysis, cont. Cost Analysis: Element-by-element examination
of estimated costs to determine whether they are in line with what reasonably economical and efficient performance should cost
Use cost analysis in those situations where price analysis does not yield a fair and reasonable price
Price Analysis: Process of deciding if the price being charged for a product or service is fair and reasonable without examining specific cost calculations
SRS Subcontracts Coordinator will work with the PI and proposed subcontractor to develop the subcontract document
Information needed includes: Subcontractor’s legal name, mailing address, FEID number Contact information for various subcontractor parties (e.g., PI,
administrative contact, financial contact) Amount of subcontract (prime award modification may be
required if budget is insufficient) Subcontract beginning and ending dates (make sure
subcontract dates are within prime award dates) Subcontract type – cost reimbursable or fixed price (most
subcontracts are cost reimbursable due to inability to define the product and/or the cost thereof)
Award Stage – SRS ResponsibilitiesAward Stage – SRS Responsibilities
Subcontract DocumentSubcontract Document
When drafting subcontract document, SRS Subcontracts Coordinator confirms the following:
Agency approval received, if required Award budget modification completed, if required Sponsored research exemption approval(s) received, if required Cost/price analysis received, if required Flow-down clauses included, as required by prime award Invoicing, technical and financial reporting requirements
(normally, same as requirements of FSU) CFDA title and number, award name, name of sponsor, and
applicable compliance requirements, if Federal funds
SRS Subcontracts Coordinator requests PI’s approval of final subcontract document
SRS Subcontracts Coordinator sends final document to subcontractor, providing any clarification and negotiating any terms, as needed
Subcontractor signs and returns document for execution
Document signed internally and returned to subcontractor
Subcontract encumbered in OMNI
Subcontract Document, cont.Subcontract Document, cont.
Verify that certification on invoice has been signed by authorized official of subcontractor
Compare actual costs to subcontractor budget Verify completeness and mathematical accuracy of
invoice Determine that:
costs are allowable sum of current invoice amount and amounts of previous
invoices is within subcontract ceiling period covered by invoice is within subcontract dates
Forward invoice to PI for review and approval When signed invoice received back from PI, process
invoice for payment and reduce encumbrance accordingly
Post-Award Stage – SRAS ResponsibilitiesPost-Award Stage – SRAS Responsibilities
Review progress reports and other communications to ascertain that work is being conducted in a timely manner
Conduct site visit, if warranted Use other means, as necessary, to provide reasonable
assurance that subrecipient administering funds in compliance with laws and provisions of subcontract and that performance goals are being achieved
Review costs to determine appropriateness and reasonableness in relation to work performed
Sign invoice certifying that work being billed has been satisfactorily performed
Return invoice to SRAS
Post-Award Stage – PI ResponsibilitiesPost-Award Stage – PI Responsibilities
PI must contact the SRS Subcontracts Coordinator to request an amendment to an existing subcontract
Reasons for amendments include changes to any of the following: subcontract ending dates (e.g., NCTE) scope of work deliverables funding (increase or decrease) prime award terms
Post-Award Stage – Subcontract Amendments
Post-Award Stage – Subcontract Amendments
Confirm subcontractor’s submission of final invoice
Ensure final deliverables have been received prior to approving payment
Complete disposition of property
Obtain statement of inventions and any other required reports per the terms and conditions of the subcontract
Close-out Stage – SRAS ResponsibilitiesClose-out Stage – SRAS Responsibilities
Subrecipient MonitoringSubrecipient Monitoring Annual monitoring for compliance with A-133
audit requirements Required for subrecipients who receive
$500,000 or more in Federal awards during a fiscal year
SRAS performs various procedures to ensure that subrecipients have met the audit requirements in A-133 Annual Subrecipient Audit Verification Subrecipient Site Visits/Further Review Final Report on Monitoring Activities
ContactContactJuel Kamke, SRS Subcontracts CoordinatorE-mail: [email protected]: (850) 644-8654Fax: (850) 644-1464Address: 874 Traditions Way, SSB 3rd Floor
Tallahassee, FL 32306-4166
www.research.fsu.edu/contractsgrants/intro.html Overview of Procedures Subrecipient vs. Vendor Subrecipient Monitoring Policy Forms
Request for New Subcontract or Amendment to Existing Subcontract
Subcontract Attachments Subcontractor Contact Information Formats for Scope of Work and Budget Schedule of Deliverables and Invoicing
Cost/Price Analysis Worksheet and Explanation Sponsored Research Exemption Request Form
General Policies and Procedures/Procurement of Serviceswww.research.fsu.edu/contractsgrants/intro.html
Questions?Questions?