Most of the sponsored research awards granted to West Virginia University are carried out within the boundaries of the University (i.e. Morgantown, Charleston, or WVUIT campus). However, as federal funding agencies have started to focus more on collaborative research, it is becoming more common to see the involvement of outside entities with sponsored projects. When necessary, substantive work can be subcontracted to one or more institutions outside of West Virginia University to conduct specific programmatic activities for a sponsored project.
By definition a subcontractor conducts project activities that are a primary purpose of the research program which, for whatever reason, are not conducted at the University. These activities should constitute a significant portion of the research program and require the leadership and direction of a responsible investigator located at the work site of the cooperating institution. Substantive work usually encompasses anyone or more of the following: personnel costs, supplies, equipment, travel and F&A costs needed by a third party.
Any activity not meeting the definition of a subcontract should be handled via a service agreement. Information regarding service agreements is available on the WVU Procurement web site at: http://www.wvu.edu/~finance/business/procurement.cfm
OSP prefers that subcontractors be named in proposals, which should also include a scope of work and detailed budget for the work proposed to be conducted by the collaborating institution. A letter of support from the collaborating institution is also required for most funding agencies.
It is important to determine whether the work should be classified as a subcontract or a service agreement at the proposal stage in order to determine F&A costs correctly. Subcontractor costs are included in WVU’s budget as a direct cost; therefore WVU will assess indirect costs on the first $25,000 of each subcontract on all new awards. Subcontracts budgeted on awards that assess WVU F&A on a Total Direct Cost (TDC) are subject to WVU F&A on the full amount of the subcontract, not just on the first $25,000.
In order to determine whether or not the work proposed to be conducted by a collaborating institution should be a subcontract or a service agreement, please complete our Checklist For Determination of Vendor or Subrecipient and provide along with your proposal to asp. Upon OSP’s review of the completed questionnaire, if the work is determined to be a subcontractor, Supplement Form C needs to be completed with the WVU/WVURC Sponsored Programs Application Approval.
When a sponsored project with a subcontract is awarded to WVU/WVURC, OSP will work with the PI, to establish a formal agreement with the collaborating institution named in your award. If it has not already been provided in the application, OSP will need a detailed statement of work specific to the activities of the subcontractor, a line item budget, and contact information for the subcontracting organization. If the subcontractor has not been name in the award then the PI must work with WVU Procurement for a sole source justification.
Once OSP receives the above-referenced information, it will move forward to issue a subcontract based on the appropriate flow down terms and conditions from the prime award. The document will be sent to the subcontracting organization for review and approval.
When the subcontractor returns the signed agreement, it will then be signed by either WVU or WVURC and OSP will enter a requisition into the MAP system. Copies of the sign document and requisition are sent to the PI and his/her business office. Original documents are forwarded to WVU Procurement for the issuance of a purchase order.
Once the subcontract is established it is up to the PI, to monitor the technical work and review the invoices. Acceptable invoices should be forwarded to the PI’s business office for payment.
Throughout the subcontracting process subrecipient monitoring must take place. A copy of the OSP Subrecipient Monitoring Policy is available.