Issuance and Management of Subawards

In conducting an extramurally funded research project, investigators may desire to enter into an agreement with third parties to complete a portion of the scope of work. The third party, known as the subaward recipient, will be required to provide the resources necessary to complete the portion of the scope of work as a semi-independent project, and this includes providing a responsible investigator at the work site of the cooperating institution or company to oversee program activities.

The proposal to the sponsor should include the intent to establish a subaward, however some sponsors may allow investigators to add subawards after the award has been made.

Refer to the terms and conditions of your award to verify whether sponsor prior approval is required to transfer a portion of the scope of work to another entity. The Office of Graduate Studies and Research establishes the terms of the agreement in what is called a subaward or subcontract. These agreements are also required when the subaward recipient providing the resources and performance of the scope of work is another campus within the TAMU system.

Initiation and Negotiation of Subawards
When an award contains a proposed subaward, Sharon Otholt will request the following information from the PI:

effective dates
Funding level
Reporting frequency
Information regarding the potential regulatory committee approvals that will be needed for the work being conducted at the subaward site
Any additional information/requirements that the PI would like to include in the subaward

Additionally, if the following information was not provided when the proposal was originally submitted, it will be required to issue the subaward:

Subaward recipient’s statement of work
Subaward recipient’s budget
Subaward recipient’s justification (if applicable)
Subaward recipient’s applicable regulatory committee approvals

Once the information is received, an agreement will be drafted to include terms and conditions as required by the prime sponsor and the University PI. Please note that subaward recipient may request clarification or wish to negotiate the terms and conditions of the subcontract. Any modifications to an outgoing subaward must be negotiated by Office of Graduate Studies and Research in coordination with the PI. At times, it may be necessary to consult with the System Office of General Counsel. Once a subaward agreement has been fully executed, the OGSR will provide a copy to the Principal Investigator.

Technical Monitoring of Subawards
As the prime award recipient, A&M-SA assumes ultimate responsibility for the conduct and completion of the project. Subaward progress reports should be reviewed thoroughly by the Principal Investigator and discussed with the subaward recipient as needed. The subaward recipient will be required to furnish reports as identified in the subaward agreement. It is important to notify the OGSR and Sharon Otholt if technical progress reports fall behind schedule or are not provided so that funds to the subaward recipient can be withheld until the reports are received.

Financial Monitoring of Subawards
In accordance with the subaward agreement, invoices will be provided to A&M-SA on a scheduled basis. The Principal Investigator should review the request for payments to ensure the payment is consistent with the effort performed. The Principal Investigator should provide approval prior to payment of the subaward invoice. Keep in mind that amounts greater than those shown on the subaward agreement will not be paid, even with the approval of the Principal Investigator.

Subaward Amendments
Should it be necessary to change any portion of the subaward agreement, the Principal Investigator should contact the OGSR. Common examples of issues that may require the issuance of an amendment include: providing additional funding; extending the period of performance; or modifying the reporting schedule. Changes to the subaward recipient’s scope of work or a change in the entity receiving the subaward may require the prior approval of the prime sponsor. Any modifications to the grant subaward requires approval by the Director of Graduate Studies and Research.

Closing Requirements
The subaward recipient is required to submit a final technical report and final invoice upon completion of the agreement. Additional items/reports may be necessary, as required by A&M-SA agreement with the prime sponsor. These may include a final inventory of property or an invention report. Principal Investigators should not approve final payment until all reports have been received from the subaward recipient.