A subaward is an agreement between the recipient of a prime award (grant or contract) and another organization (educational institution or other entity) in support of a sponsored project in which any substantive programmatic activity is carried out by the other organization, which is a separate legal entity, administratively independent of the prime award recipient. The involvement of the subawardee organization is that of actually performing a portion of the programmatic activity as opposed to simply providing a routine service to the prime award recipient.

The following factors indicate a subaward. The other organization:

• has responsibility for programmatic decision making
• contributes to the scholarly/scientific conduct of the project as described in the statement of work for the prime award
• uses the funding to carry out its own program, as compared to providing goods or services for a UI program
• provides matching funds or cost sharing
• conduct of the work requires considerable discretionary judgment and the unique expertise of the other organization
• performance is measured against the objectives of the prime award
• investigator would be considered as a co-author of publications resulting from the work performed under the prime award

A fee for service agreement (UI purchase order) is an agreement between the recipient of a prime award (grant or contract) and another organization (educational institution or other entity) in support of a sponsored project in which the other organization merely provides a routine service for the prime award recipient.

The following factors indicate a fee for service agreement. The other organization:

• provides a routine service (e.g., equipment fabrication or repair, data processing, performing routine analytical testing services, etc.)
• provides the goods or services as part of its normal business operations
• provides similar goods or services to many different purchasers
• operates in a competitive environment (i.e., competes with others who can provide a similar service)
• provides services of a repetitive nature or goods of a commonly available kind
• provides the service in support of the prime award recipient's project (rather than the organization's own project)
• assumes the risk if performance is more costly or time consuming than expected

Fee for service arrangements are handled through the University Purchasing Department.

Issuing a subaward to, or entering into a fee for service arrangement with, another UI department:

Regardless of the type of service performed, the nature of the arrangement is not considered as a subaward because both departments are part of the same legal entity, The University of Iowa. The UI PI and the PI's departmental administrator should make arrangements with the programmatic contact in the other UI department and with the other departmental administrator regarding all aspects of the arrangement. A UI requisition can be issued directly from the PI's department to the other UI department as reimbursement for the costs incurred. Contact dsp-contracts@uiowa.edu if you have questions.

Printer Friendly Version