Subagreement Process


A subagreement is a document written under the authority of, and consistent with, the terms and conditions of an award (a grant, contract or cooperative agreement), that transfers a portion of the research or substantive effort of the prime award to another institution or organization.

When a portion of the project is going to be carried out at another institution or organization (third parties), a subcontract or subagreement with the University is required in order to ensure compliance with sponsor requirements. The third party is required to provide the necessary resources to conduct the work, including providing an investigator at the work site to oversee the project activities.

The following documentation from each subrecipient's authorizing official is required at the proposal stage:

  • Legal name of subrecipient (completion of the “Subrecipient Contacts Form” is helpful)
  • Contact name and address
  • Tax ID # for subrecipient
  • Subrecipient’s scope of work – What are we paying the subrecipient to do?
  • Subrecipient’s itemized budget and budget justification
  • Subrecipient’s qualifications to do the work

Many federal agencies require a completed cover sheet and certifications signed by the institution's authorized official. Subagreements may also require the prior written approval of the agency's grants officer.

At the award stage, all subrecipients must register as a vendor before a subcontract will be written.

The Office of Sponsored Programs (OSP) writes and executes subagreements with other institutions. OSP will encumber the funds in the grant/contract account for projected expenses pending actual expenditure of the funds for subagreements. The AU department for which the subagreement was written will be notified of the encumbrance number. The department is then responsible for monitoring the subrecipient’s progress and processing the subrecipient’s invoices for payment. OSP is responsible for issuing the subagreements and any modifications, monitoring payments and cost-share reporting, and closing out of subagreements.

Subaward vs. PSC  FDP Subagreement Template (Link to FDP Website)
Subagreement Process Non-Federal Subagreement Template
Subrecipient Cost Sharing Definition Attachment 3B
Subrecipient Invoicing Procedures Subagreement Invoicing Checklist
Vendor Registration Information (Link to PPS) Subrecipient Cost Sharing Documentation Form
Subaward Definition Subrecipient Sample Invoice
  Subagreement Close Out Documents
  Certification Form for Foreign Entities and For-Profit Organizations
  Certification Form for Educational Institutions, Non-Profits & Local Governments
  AU Subrecipient Commitment Form