What is a Subrecipient and Contractor?
Subrecipients and Contractors are entities such as other campuses or collaborators that participate in carrying out a portion of the project and receive funding drawn from the prime award. These relationships can qualify as either a Subrecipient (subaward) or a Contractor (vendor/consultant) and will affect differences in the terms and conditions of the award. Questions should be directed to the Office of Contracts & Grants (OCG@ucanr.edu) while developing the proposal to determine which relationship is appropriate.
Determining a…
Contractor (Vendor/Consultant)
Does the entity provide the goods or services within normal business operations?
Does the entity provides similar goods or services to many different purchasers?
Does the entity operate in a competitive environment?
The entity will NOT be involved in the programmatic decision- making of the project?
The entity will NOT be subject to applicable program compliance requirements?
If yes to the questions above, this activity should be classified as a vendor or consultant.
Subrecipient (Subaward)
Will the entity’s performance be measured against whether the objectives of the project are met?
Does the entity have responsibility for programmatic decision making?
Does the entity have responsibility for adherence to applicable program compliance requirements?
Does the entity have the right to publish project results or serve as a co-author?
Does the entity have the option to develop patentable technology?
If yes to the questions above, this activity should be classified as a Subaward.
What are the differences that will impact my budget preparation?
Contractor (Vendor/Consultant)
- Vendors and consultants should be categorized in the Supplies & Expenses category of the proposal budget.
- Indirect costs will be assessed on the full amount of line item.
Subrecipient (Subaward)
- Subawards should be categorized as a separate line item under Miscellaneous Costs in the Proposal Budget.
- Only the first $25,000 of a subaward expense should be included in the base when calculating Indirect Costs when using our federally negotiated rate. Any subaward amounts in excess of $25,000 will not be subject to indirects.**
**Exceptions:
1) Using an indirect cost rate other than our federally negotiated rate. Some sponsor policies may use a Total Direct Cost or Total Cost base to calculate the indirect costs.
2) For subawards to other UC Campuses the entire amount of the subaward is excluded from the base when calculating indirect costs. However, the F&A rate of the participating campus should be included as part of their budget for that campus.
What items do I need to include with my proposal?
| Vendor/Consultant | Subaward |
| Include in budget justification | Letter of authorization from collaborating Institution |
| Bid form, if applicable | Description of scope of work |
| Letter of support, if applicable | Budget, Budget Justification |
| Any other required documents or approvals required by the sponsor | Subrecipient Commitment Form |
| Any other required documents or approvals required by the sponsor |
The OCG initiates and issues all subawards for extramurally funded projects on behalf of the University.
UC Davis Business Contracts initiates and issues all vendor and consultant contracts on behalf of ANR.
Policies:
UCOP Contract and Grant Manual Chapter 8-516