Sponsored Research Contracting and Compliance - Subagreement Preparation and Activation Process/FAQS

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Subagreement Preparation and Activation Process/FAQS

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Can I issue a subagreement if my award has not been finalized?
What are the various types of Subagreements used?
Subagreement Preparation and Communication?
What are the essential elements of a subagreement?
Is the sponsor’s prior approval required before issuing a subagreement?
What is FFATA?
When does FFATA apply?
What do you need to do if FFATA applies to your subagreement?
How is the subagreement managed?

Can I issue a subagreement if my award has not been finalized?

The Subagreement process can begin but subagreements cannot be fully executed by SDSU Research Foundation until the prime award has been completed and processed for fund setup. See award preparation and activation process for more information.

What are the various types of Subagreements used?

While all of the following may be considered “subagreements”, each has particular terms and conditions that reflect the prime award.

Collaborative Agreement – an agreement between two or more researchers engaged in a research project about the nature of their working relationship. It specifies the intent of the parties to share data, research materials and facilities, and publish research findings.
Cooperative Agreement – an award of financial assistance used to enter into the same kind of relationship as a grant, but is distinguished from a grant in that it provides for substantial interaction between the federal agency and the recipient in carrying out the award.
Memorandum of Agreement – a memorandum of agreement (MOA) is a written document describing a cooperative relationship between two parties wishing to work together on a project or to meet an agreed upon objective. An MOA services as a legal document and describes the terms and details of the partnership agreement.
Memorandum of Understanding – a memorandum of understanding (MOU) describes a bilateral or multilateral agreement between two or more parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement.
Subagreement – a agreement that is written under the authority of, and consistent with, the terms and conditions of a prime award, and authorizes a portion of the research or substantive effort to be performed by another organization. Other terms for a subagreement include subaward, subcontract, subgrant, purchase order, purchase agreement, and consortium agreement. As defined in uniform guidance, a “subaward is an award of financial assistance made under an award.” Subagreements as defined above are not subject to the procurement standards.
- Subaward – 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 a legal agreement.
- Subcontract – a legal agreement by which you hire another person or company to perform a scope of work under a prime contract.

Subagreement Preparation and Communication?

The subagreement is prepared by the principal investigator’s assigned SRCC analyst. The PI or designee and SRA administrator will provide essential elements for the subagreement including sponsor approval, scope of work, period of performance and budget.

What are the essential elements of a subagreement?

The mandatory terms and conditions of the prime award.
Any additional terms and conditions based on the requirements of the scope of work and assessment of risk
PI’s concurrence with the terms.
Place of performance
Period of performance
Scope of work
Reporting requirements and/or other deliverables
Budget
Statement of Financial Interest in a Subrecipient (add link to form)
Subcontract Procurement Form (add link to form)
Other compliance information and/or documentation as required per the prime award (e.g. Uniform Guidance protocols, protected information data security)
If international: W8-BENE or equivalent
Other relevant issues as applicable (e.g. intellectual property)
Review of subrecipient’s audit or financial reports
A fully executed Subrecipient Commitment Form

Is the sponsor’s prior approval required before issuing a subagreement?

Some sponsors require prior approval of a subrecipient and review of the subagreement before issuing the subagreement when the following conditions may apply:

the subrecipient was not included in the original proposal submission
the subrecipient is a foreign entity
the proposed scope of work will result in a significant modification of the overall project
sponsor terms and conditions require the review and approval of the subrecipient agreement prior to issuance

What is FFATA?

The Federal Funding Accountability and Transparency Act (FFATA) legislation requires information on federal awards and its first-tier subagreements be made available to the public via www.USAspending.gov.

The FFATA reporting system (FSRS) is the reporting tool Federal prime awardees use to capture and report subagreement and executive compensation data regarding their first-tier subagreements to meet the FFATA reporting requirements.

When does FFATA apply?

Federal Funding Accountability and Transparency Act (FFATA) applies to the prime recipient and their first-tier subrecipients if the Federal prime award is subject to Federal Acquisition Regulation clause 52.204-10 or is greater than or equal to $25,000 as of October 1, 2010..

For more information on FFATA requirements please visit www.fsrs.gov.

What do you need to do if FFATA applies to your subagreement?

If your prime award is subject to the Federal Funding Accountability and Transparency Act (FFATA) you must provide your Contracting and Compliance Analyst with a project description that is less than 4,000 characters (including spaces) and does not include personal identifying information.

This project description will be added to the subagreement’s scope of work and uploaded to the FFATA reporting system (FSRS) as per the requirements of the prime Federal award.