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Per 2 CFR 200.92, Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program.
Procedure. Grantees must establish a subaward, or consortium agreement, with any outside organization that performs any of their grant-supported research activities. Normal grant purchases and fee-for-service arrangements are not considered subawards.
A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract. Contract means a legal instrument by which a non-Federal entity purchases property or services needed to carry out the project or program under a Federal award.
Subaward Agreements are used to issue grant funds to Subrecipients. A Consultant PSA should be used to contract for consulting services. All grant-funded Subawards are managed through SPS before they are sent to and signed by the Subrecipient.
Generally, contracts are appropriate when the grantee needs a specific set of goods or services to accomplish the goals and objectives of the grant. Generally, subgrants are appropriate when the grantee requires ongoing support to accomplish the goals and objectives of the grant.
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Subrecipients are subject to monitoring against the compliance requirements of the federal program. Contractors are not. This resource summarizes the determination requirements at 45 CFR 75.351 and will be helpful to grantees who partner with child care and other entities.
Subaward. It involves a written agreement whereby a portion of the project work is transferred to another organization under a Contract, Grant or Cooperative agreement.
Per 2 CFR 200.92, Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program.

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