Slide 1 - SRA International by dffhrtcv3


									Subcontracting: Trying
to Make it Easier
Keith Hurka-Owen, Associate Director, Grants & Contracts,
Duke University

Cassandra Rogers, Assistant Director, Sponsored
Programs, University of North Carolina Greensboro

Lori Messer, Director, Research & Sponsored Programs
Wake Forest University
 When to Subcontract
 UNC/Duke Master Agreement
 Subcontractor checklist and other helpful
 International collaborations
What is a subcontract?
   A contract awarded to another institution
    by the primary recipient (prime) of a
    contract or grant
     Alsoknown as subaward, consortium
      agreement, etc.
Definition from 2 CFR Part 215
(formerly OMB A-110)
   “Subaward means an award of financial
    assistance…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 …”
Why Subcontract?
 Provides the project with access to more
  resources and expertise than in single-
  investigator/institution projects.
 The trend is for more collaborations,
  therefore, more subcontracts.
Subcontract vs. Consultant
   OMB Circular A-133 can help determine
    whether payments to another individual or
    institution should be a federal award or
    payment for goods and services
     See OMB A-133 § _.210 Subrecipient and
      vendor determinations.
Subcontract vs. Consultant cont.
    OMB A-133 § _.210 Subrecipient and vendor
    (1) Determines who is eligible to receive what Federal financial
    (2) Has its performance measured against whether the objectives of the
    Federal program are met;
    (3) Has responsibility for programmatic decision making;
    (4) Has responsibility for adherence to applicable Federal program
    compliance requirements; and
    (5) 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.
Subcontract vs. Consultant cont.
    OMB A-133 § _.210 Subrecipient and vendor
    (1) Provides the goods and services within normal business operations;
    (2) Provides similar goods or services to many different purchasers;
    (3) Operates in a competitive environment;
    (4) Provides goods or services that are ancillary to the operation of the
    Federal program; and
    (5) Is not subject to compliance requirements of the Federal program.
Subcontract vs. Consultant cont.
   May be dictated by university policy or
    state law.
     Ex. If total costs are over specific dollar
      threshold must be subcontract
Subcontract vs. Consultant cont.
   Determine at the proposal stage if possible
     Talk to your PI and his/her collaborator and
      find out exactly what they are doing
     Is collaborator a Co-PI?
     Performing substantive work?
     Where is collaborator going to do the
Duke University – Best Practices

   Checklist used at proposal stage
     Scope    of work
     Budget and budget justification
     Institutional authorization
     Copy of indirect cost (F&A) rate agreement

   Purpose: Review for compliance and
Subcontract vs. Consultant cont.
 If subcontract was not included in original
  proposal you may need to request
  permission to subcontract after award
 F&A implications for subcontractor and
Proposal Budgets & Subcontracts

   Know your F&A base
     Cannot  ask for F&A on subcontracted costs if
      you are salaries & wages base
     Modified Total Direct Cost (MTDC)

   Get a letter of intent and budget signed by
    subcontractors institutional official
     Need   to be sure rates, etc. are correct
Wake Forest University – Best
   Set up checklist for award processing to
    include preparation/negotiation of
     Banner   events
University of North Carolina
Greensboro – Best Practices
   PI initiated subcontract request form
Subcontract pre-preparation
 Check the list of debarred and suspended
  (excluded) parties on the web:
 Check Specially Designated Nationals List
Wake Forest University – Best
   Send a draft agreement even before
    award is received so start of subaward is
    not delayed
Agreement Templates
 Federal Demonstration Partnership (FDP)
  template for FDP members; template for
  non-FDP members
 Master Agreements
     UNC/Duke   Master Agreement
Wake Forest University – Best
 Audit certification form sent with the final
  version of the subcontract. Certification is
  to be sent back with a copy of the fully
  executed subcontract.
 Pick a date (ex. late fall) to check A-133
  audits of all subcontracts on-line
Subcontract Monitoring
   Required under A-133
     Monitor  the activities of subrecipients to
      ensure compliance with T&Cs of award and
      that performance goals are achieved.
     Ensure that subrecipients have met the audit
     Require each subrecipient to allow access to
      the records and financial statements.
Minimizing Risk
 Do as much as possible at proposal stage
 Issue subcontract one year at a time
 Check FWA and IRB registration on-line at
  the OHRP website
Wake Forest University – Best
   Invoices sent to the Office of Research and
    Sponsored Programs
   PI contacted; may come to office to approve
   Or scan invoice and ask for approval via email
   Opportunity to talk about progress; assess
International Collaborations
   The Setting
     BigPush to Internationalize Campuses
     Large Increases in International Activities
     University Missions: Free and Open
      Exchange of Ideas
International Collaborations
   The Laws: What does your university
    currently do with international subcontracts
     Terrorism?
     Export Regulations?
     Research with human subjects in foreign
International Collaborations:
   The Regulations
     Executive  Order 13224 (September 24, 2001)
     U.S. Patriot Act
International Collaborations:
   Recent T&Cs from a Foundation
     The organization has not provided, and will
     take all reasonable steps to ensure that it
     does not and will not knowingly provide,
     Material Support or Resources to any
     individual or Entity that commits, attempts to
     commit, advocates, facilitates, or participates
     in Terrorist Acts, or has committed, attempted
     to commit, facilitated, or participated in
     Terrorist Acts.
International Collaborations:
   Recent T&Cs from a Foundation
       5.Specifically, in order to comply with its obligations under
        paragraph 4, the organization will take the following steps:

            a. Before providing any Material Support or Resources to an
             individual or Entity, the organization will verify that the individual or
             Entity does not appear on any of the Government Lists.

            b. Before providing any Material Support or Resources to an
             individual or Entity, the organization will use reasonable efforts to
             gather, and will carefully consider, all relevant information about that
             individual or Entity that is available to the organization.

            c. The organization will implement reasonable monitoring and
             oversight procedures to safeguard against assistance being
             diverted to support Terrorist Activity.
International Collaborations:
   The Lists
       Denied Persons List
        A list of individuals and entities that have been denied export
        privileges. Any dealings with a party on this list that would violate
        the terms of its denial order is prohibited.
       Unverified List
        A list of parties where BIS has been unable to verify the end use
        in prior transactions. The presence of a party on this list in a
        transaction is a “red flag” that should be resolved before
        proceeding with the transaction.
       Entity List
        A list of parties whose presence in a transaction can trigger a
        license requirement under the Export Administration
        Regulations. The list specifies the license requirements that
        apply to each listed party. These license requirements are in
        addition to any license requirements imposed on the transaction
        by other provisions of the Export Administration Regulations.
International Collaborations:
   The Lists
       Specially Designated Nationals List
        A list compiled by the Treasury Department, Office of Foreign Assets
        Control (OFAC). OFAC’s regulations may prohibit a transaction if a
        party on this list is involved. In addition, the Export Administration
        Regulations require a license for exports or reexports to any party in any
        entry on this list that contains any of the suffixes “SDGT”, “SDT”, or
       Debarred List
        A list compiled by the State Department of parties who are barred by
        §127.7 of the International Traffic in Arms Regulations (ITAR) (22 CFR
        §127.7) from participating directly or indirectly in the export of defense
        articles, including technical data or in the furnishing of defense services
        for which a license or approval is required by the ITAR.
       Nonproliferation Sanctions
        Several lists compiled by the State Department of parties that have
        been sanctioned under various statutes. The Federal Register notice
        imposing sanctions on a party states the sanctions that apply to that
        party. Some of these sanctioned parties are subject to BIS’s license
        application denial policy described in §744.19 of the EAR (15 CFR
International Collaborations:
Export Regulations
   The Regulations
     Export Administration Regulations
      (Department of Commerce)
     International Trade in Arms Regulations
      (Department of State)
International Collaborations:
Export Regulations
   What activities on a subcontract might
    trigger concern?
     Equipment  Transfers
     Exchange of controlled software or technical
     Foreign Travel—what’s on that laptop?
International Collaborations:
Research with Human Subjects
   The Regulator: Office for Human
    Research Protections (OHRP)
     The   Institution is responsible for ensuring that
      all institutions and investigators engaged in
      its U.S. federally-supported human subject
      research operate under an appropriate OHRP
      or other federally-approved Assurance for the
      protection of human subjects.
International Collaborations:
Research with Human Subjects
   The Regulator: Office for Human
    Research Protections (OHRP)
     Federal  Wide Assurances Numbers (FWA)
     Internal Review Board Approvals
     Personnel Training in Conducting Research
      with Human Subjects
International Collaborations:
Best Practices
   Pre-award Checklist
     Sub-recipient   Commitment Form
   Ask questions early
     Is the subcontractor a foreign institution?
     Will we be transferring technology to the
      foreign subcontractor?
     Will the foreign subcontractor be conducting
      research with human subjects?
International Collaborations:
Best Practices
   Post-award
     Monitoring Invoices
     Maintaining required approvals
   Keith Hurka-Owen
    Duke University

   Cassandra Rogers
    University of North Carolina at Greensboro

   Lori Messer
    Wake Forest University

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