Procedure Library

Include Subrecipients in a Proposal Budget

Purpose

Prepare and submit a proposal that includes a subrecipient and ensure that collaborating organization has an established Vendor ID and Research Subrecipient (RSR) designation through eProposal and the Document Summary Sheet (DSS) automated vendor verification process.

Applicability

Principal Investigators (PIs) and administrators preparing proposal budgets that include funds for a collaborating organization or institution (subrecipient).

Before including a subaward in a proposal, PIs and administrators should consider the ability of the subrecipient organization to perform the work and adequately manage the administrative and financial responsibilities in accordance with the subaward terms and conditions.

Instructions

Vendor Identification and Subrecipient Verification
Before a proposal containing a subrecipient can be submitted through eProposal, the proposed subrecipient must:

• Have an active University vendor record and Vendor ID.
• Be designated as a Research Subrecipient (RSR) within University financial systems

Existing Vendor Found
The University utilizes an automated vendor lookup process within eProposal/DSS for subrecipient proposals.

Proposal preparers should search for the collaborating organization in the Vendor Name field within eProposal (the DSS).

If a valid Vendor ID is located during the DSS vendor search:

1. Select the vendor from the search results
2. DSS automatically records the Vendor ID
3. DSS automatically sends a notificaiton to Purchasing requesting RSR designation if needed.
4. Vendor status will update after Purchasing completes processing. 

Vendor Not Found
If no Vendor ID can be located:

1. Select the New Vendor Request option
2. Enter:
   • Vendor Name
   • Contact Name
   • Contact Email Address
   • Phone Number (optional)
3. The DSS automatically submits a vendor setup request to Purchasing and copies the requester and OSP.
4. Purchasing coordinates vendor establishment and communicates directly with the requester when setup is complete.

Required Documents List

Gather required documents from the proposed recipient. The following are required for OSP review:

1. Budget, including direct and facilities and administrative (F&A) costs.

   The F&A rate used for this budget is the subrecipient's rate.

   • If the subrecipient doesn't have an approved F&A rate, a de minimis rate of 10%, 15%, or a rate required by the invidual agencies can be used. 
   • The subrecipient's direct and indirect costs need to be included in the University's budget as direct costs. Additionally, only the first 25k of the total subcontract budget should be calculated in the direct cost base. See Cost Calculations
2. Budget justification; detail should conform to sponsor proposal instructions.
3. Scope of work describing the subrecipient's portion of the project.
4. Letter of Intent to Establish a Subaward (use appropriate template for circumstances) signed by subrecipient's authorized official.

PIs should communicate with the subrecipient when the proposal has been submitted and when the sponsor has made a determination on the proposal.

If the proposal is funded, PIs/department administrators should submit a detailed budget to OSP, in eAward, that allocates sufficient funds in the subawards line. For OSP to initiate a new outgoing subaward, PIs/department administrations must request a separate New Subaward Transaction request in eAward. 

Related Policies and Procedures

• Grant Life Cycle > Develop Your Proposal > Obtain Subrecipient Documentation
• Research Handbook > Budget Development > Major Budget Categories > Subcontracts/Subawards
• Forms > Letter of Intent to Establish a Subaward (use appropriate template for circumstances)
• Grant Life Cycle > Submit Your Proposal > Electronic Submission & Registration > Cayuse 424