A subaward is a formal written agreement between Stanford University and another party to perform a portion of the statement of work under a Stanford sponsored project. 

A subaward must include a clearly defined, intellectually significant Statement of Work (SOW) to be performed by the Subrecipient. The Subrecipient's SOW is performed by its personnel, using its own facilities and resources. Work is usually performed at the Subrecipient's site.

Stanford requires PIs to submit specific documents to their Institutional Representative in order for a named Subrecipient to be included as part of a proposal. The Institutional Representative will not endorse a proposal until these elements are on file.

Subrecipient proposal elements are expected to conform to the sponsor’s requirements for Stanford's prime proposal. PIs are responsible for obtaining all materials from their Subrecipient in the correct format.

Required Elements to Include in a Subaward Proposal

• Subrecipient's Statement of Work, including a clear description of the work to be performed, the proposed timelines, and deliverables.
• Subrecipient's Budget and Budget Justification, including the Subrecipient's direct and indirect costs, calculated using the Subrecipient's approved F&A and fringe benefit rates, and verifying any committed cost sharing.
• An OSR Subrecipient Commitment Form (OSR Form 33, downloadable Word file), completed and signed by the Subrecipient's institutional official.
• A Fair and Reasonable Cost Analysis - Only for Subawards issued under Federal Contracts  (OSR Form 45, downloadable Word file), as applicable, signed by Stanford's PI. The PI's signature on this form certifies that he/she has selected the Subrecipient in accordance with this policy and determined that their costs are reasonable with respect to the proposed SOW. In addition, the PI certifies that s/he has reviewed the Subrecipient's proposed budget to ensure that all proposed costs are allowable under the Sponsor's anticipated terms and conditions.
• PIs are responsible for working with their Subrecipients to make any necessary modifications in proposed budgets that may be required to bring them into conformance.
• Any additional elements that may be required by Stanford's sponsor (e.g., Certificate of Current Cost or Pricing data, Sole Source Justification, a biosketch of subrecipient key personnel, etc.)
• A Stanford PI or designee may not authorize a Subrecipient to begin working without a fully executed subaward agreement in place.

After an award has been accepted by Stanford University, the PI or his/her authorized administrator submits a requisition in Oracle Financials identifying the proposed Subrecipient.

This request documents the amount authorized by the PI for the subaward and delineates the desired period of performance. OSR is not authorized to issue a subaward until an approved requisition and specific documents are on file, including:

• Copies of the Subrecipient's F&A and Fringe Benefit rate agreements
• Copies of the Subrecipient's human subjects approval and approval to use animals
• If applicable, a copy of the Subrecipient's most recent A-133 audit or link to its record on the Federal Audit Clearinghouse, or completion of the Audit Certification and Financial Status Questionnaire (OSR Form 47, downloadable Word file), if not provided at the time of proposal
• Any applicable requested information (Subrecipient Commitment form, updated Certificate of Cost or Pricing Data, Small/Small Disadvantaged Business Plan, audit information, etc.), Sole Source Justification, if required
• Any special requirements the PI wishes to impose (prior approval requirements, report formats or due dates, etc.)

Requesting Modifications to Existing Subaward

Modifications to a subaward are issued by OSR in response to requisitions submitted through Oracle by a PI or his/her designee. This includes modifications to the Statement of Work, incremental funding, rebudgeting, extending or reducing the time for performance, and other changes in the terms of a subaward. In rare instances, OSR may initiate action on a subaward without a corresponding requisition; typically these changes involve urgent action on a subaward that is initiated by the University.

PIs may not reduce obligated funding or prematurely terminate an approved subaward unless they submit a corresponding requisition through Oracle to request a formal change in their subaward. In such cases, Stanford is required to honor the terms of the subaward, which typically require an advance notice period.

Approving Invoices

PI's must approve a  Subrecipient invoice for payment and to review expenditure statements or otherwise ensure that payments to Subrecipients are made in a timely manner, consistent with the terms of the subaward and approved invoices.  The Stanford PI’s signature on the invoice is required to certify that he/she approves payment of the invoice, attests that the charges appear reasonable and that progress to date on the subaward is satisfactory and in keeping with the statement of work. Subaward invoices require the following statement to accompany the PI’s signature:  “In signing below I approve payment of this invoice and attest that the charges appear reasonable, and progress to date on this project is satisfactory and in keeping with the statement of work.”