Reminder: Subrecipient or Contractor determination must be done at proposal stage

If your project includes external collaborations please remember that you must determine, at the proposal stage, if that collaborating party is a subrecipient or a contractor. It is important that the correct determination is made as there are budgetary differences between subrecipients and contractors as well as different documentation requirements. The correct determination at proposal stage will streamline the contracting process at the time of award.

Below is information to assist in making the required determination. If you have any question, please contact your Sponsored Programs Research Administrator.

• Subrecipients. A subaward is for the purpose of carrying out a portion of an award. Characteristics which support the classification of an entity as a subrecipient include when the entity:
  • Has its performance measured in relation to whether objectives of a program were met;
  • Has responsibility for programmatic decision making;
  • Is responsible for adherence to applicable program requirements specified in the award; and
  • In accordance with its agreement, uses the funds to carry out its scope of work, as opposed to providing goods or services for the benefit of the prime recipient (BU).

Other characteristics of a subrecipient:

• Has an identified PIPrincipal Investigator View Boston University's policy on...
• Work on the project may result in patentable or copyrightable intellectual property
• Is expected to author or co-author publications

• Contractors (Vendor, including individuals or entities that act as a vendor of consultant services). A contract is used to obtain goods and services for BU’s own use and creates a procurement relationship with the contractor. Characteristics indicative of a procurement relationship between BU and a contractor are when the contractor:
  • Provides the goods and services within normal business operations;
  • Provides similar goods or services to many different purchasers and is not financially dependent on BU;
  • Normally operates in a competitive environment;
  • Provides goods or services that are ancillary to the operation of the program; and
  • Is not subject to compliance requirements of the program as a result of the agreement, though similar requirements may apply for other reasons.

Other characteristics of a contractor/vendor:

• • For individual vendors, has neither a current, nor former employment relationship with BU, in the past calendar year

Additional Resources:

https://www.bu.edu/research/funding-grants/proposal-submission/#sub1

https://www.bu.edu/research/forms-policies/procedures-for-the-administration-and-monitoring-of-subrecipient-agreements-issued-to-third-parties/