Subawards
DOR-1122
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1.2 Distinguishing Between a Subaward and a Procurement Action
1. Proper Classification Is Critical
The proper classification of a transaction as a subaward or other procurement action is critical to ensure proper accounting for costs and compliance requirements. Misclassification may result in delays in subaward processing or inaccurate calculation of costs (e.g, failure to include or exclude F&A costs) and may result in the PI having insufficient funding to carry out the proposed program.
2. Subaward Indicators
The agreement is likely a subaward if you can answer “yes” to any of the following questions.
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Is the Scope of Work of assigned to the entity intellectually significant?
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Will the entity’s performance be measured against whether the objectives of the sponsored program are met?
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Does the Subrecipient have responsibility for programmatic decision-making?
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Will the Subrecipient assume responsibility for adherence to applicable sponsor program compliance requirements?
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Will the Subrecipient uses sponsor funds to carry out a program (Statement of Work) of Stanford as compared to providing goods or services?
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Does the work being performed make up a significant portion of the programmatic effort of the project?
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Could the entity’s work result in intellectual property development or publishable results (including co-authorship)?
3. Procurement Actions Indicators
he agreement is likely a procurement action if you can answer “yes” to any of the following questions.
- Does the entity provide the goods and services within its normal business operations?
- Does the entity provide similar goods or services to many different purchasers?
- Does the entity operate in a competitive environment?
- Will the entity provide goods or services that are ancillary to the operation of Stanford's sponsored project?
- Will the entity not be subject to compliance requirements of Stanford's sponsor?
