Subcontracts

1
Subcontracts
Why Does it take so long to Process?
Kim Hayes, Senior Grant and Contract Officer Sue
Stein, Subcontract Coordinator
2
Top 10 Reasons It Takes So Long to Process a
Subcontract
3
Submitting Proposals
4
Processing and Accepting Awards
5
8. Negotiations
6
7. Following- up on Funding Issues
7
Responding to E-mails
8
Requesting No-cost Extensions
9
Responding to Sponsors Questions
10
3. Following up on Compliance Issues
11
Going on Vacation
12
Gathering Data
13
(No Transcript)
14
Sponsor Approvals

• If you know a subrecipient will be part of the
  project, include it in the original proposal.

15
Sponsor Approvals (Cont.)

• If added after Agreement is Awarded, may need
  Sponsor Approval
• May need to go through bid process
• Or
• May need to do a sole-source justification

16
Types of Agreements

• The Prime Agreement and the Subrecipient
  determine the type of Agreement
• Types of Agreements
• FDP
• Non-FDP
• Cost Reimbursable
• Fixed Price
• Contract

17
Agreements Items to Consider

• Compliances
• Flowdown of terms and conditions
• Usually incorporated as Exhibit C or referenced
  as a link

18
Request to Issue a Subcontract

• Must be completed by the Department when funding
  is ready to be released.
• Timing determined by PI
• Complete information is necessary to help
  expedite the process

19
Request to Issue a Subcontract (cont.)

• Subrecipient information
• Name, Address, E-mail, Telephone and Fax
  information
• PI Information
• Name, Address, E-mail, Telephone and Fax
  information
• Billing, Invoicing Information
• Name, Address, E-mail, Telephone and Fax
  information

20
Request to Issue a Subcontract (cont.)

• Answer all Questions regarding Cost Sharing,
  Budgeting, and Selection Process
• Reporting Requirements

21
Scope of Work

• Needs to be included with the Request to Issue a
  Subcontract
• Should truly reflect what the expectations of the
  Subrecipient are.

22
Budgets

• Needs to be included with the Request to Issue a
  Subcontract
• Department should review before releasing
• That Budget is in keeping with the Scope of Work
• That Budget Adds up

23
Budgets (cont.)

• Department should review before releasing(cont.)
• That a justification is included and it matches
  the Budget
• That Budget matches amount requested in Request
  to Issue

24
Subrecipient Institutional Profiles

• What is it?
• Document required of all entities to whom we
  issue Subcontracts.
• Can be the most time consuming part of preparing
  document.

25
Subrecipient Institutional Profiles (cont.)

• Why do we need it?
• Provides Information on
• Federal Audit Agency
• FA for Subrecipient
• Financial and Policy Information
• A-133 Information

26
A-133 Reports

• What are they?
• Any entity with Federal award expenditures in
  excess of 500,000. Cornell University is
  subject to the Office of Management and Budget
  Circular A-133, Audits of States, Local
  Government, and Non-profit Organizations.
• Circular A-133 requires Cornell University to
  monitor our subrecipients of Federal awards and
  determine whether they have met the audit
  requirements of the Circular and whether they are
  in compliance with Federal laws and regulations.

27
A-133 Reports (cont.)

• A-133 Report is due 9 months after the
  Institutions Year End.
• Example, FY ending 6/30, A-133 Report due by
  March 31 of following year.

28
Benefit Rate Agreements

• Need Up to Date Information of rates
• Needs to match what was in the Budget.

29
Facilities and Administrative Costs Agreements

• AKA Indirect Costs or Overhead
• Needs to reflect what the Subrecipient charged in
  the Budget

30
Subcontract is prepared and sent to Subrecipient
for review and approval.

• And you would think that would be it!

31

• NOT !!!!

32
Negotiations

• Discussions with Subrecipient so that Agreement
  language is acceptable to both parties.
• Can be most time-consuming part of process for
  issuing a Subcontract.

33
Whom to Contact

• Your GCO is first line of contact