Subrecipient vs Consultant vs Service Provider
| AGREEMENT TYPE | DEFINITION | DETERMINING FACTORS | CHARACTERISTICS |
|---|---|---|---|
| SUBRECIPIENT
(Subaward) |
A subaward is a reciprocal legal agreement whereby a research project is carried out between two or more organizations that are separate entities. The subaward is issued by the granting entity (recipient/sponsor) to a receiving entity (subrecipient). Under the terms of the Subaward, the subrecipient must perform a substantive role in the conduct of the planned research and not merely serve as a conduit of funds to another party or parties. The subrecipient shall assign a lead investigator who will serve as the Principal Investigator (PD/PI) at the subrecipient entity.
The PD/PI at the subrecipient entity typically commits a level of effort (salary) that is predetermined with the recipient/sponsor. Subrecipients may also charge other expenses in various categorical breakdown of costs, including but not limiting to additional personnel, travel, equipment, material & supplies, tuition, F&A, and other allowable costs. The subaward between the recipient and subrecipent is also commonly referred to as a subcontract or subrecipient agreement. |
A subaward will be led by an individual (subrecipient PD/PI) who will:
• Subrecipient PD/PI commits effort/salary to the study • Subrecipient PD/PI has programmatic decision-making and responsibility to the study • Subrecipient PD/PI manages technical and administrative aspects of the portion of the overall or portion of the project’s • Subrecipient PD/PI will utilize facilities and/or employees of the subrecipient organization in order to carry out the project’s statement of workstatement of work • Subrecipient PD/PI will perform the work as part of their institutional appointment |
"A subrecipient shall:
• Abide by the terms and conditions of the subaward agreement • The subaward includes full project costs proposed by the subrecipient organization, including the subrecipient’s Federally negotiated F&A rate • The terms and conditions of the prime award should flow through to the subrecipient organization • The subrecipient organization shall work within the approved budget. All costs above the approved budget must have prior approval from the recipient/sponsor • The subrecipient organization is entitled to own all data, reports, materials and inventions developed under the subrecipient entity • Subrecipients have tax identification number " |
| CONSULTANT
(Consulting Services Agreement) |
A consulting services agreement is a legal binding agreement between a customer (Florida Atlantic University) and a consultant, in which the consultant provides professional services or technical advice to the customer. A consultant is an individual or consulting firm that is not affiliated with Florida Atlantic University. Consultants generally offer only advice or propose solutions to problems, but they do not direct, carry out, or implement solutions. Consultants can provide general oversight, expertise, or help design a portion of the study. Consultants are compensated by an hourly rate multiplied by a pre-determined maximum number of hours.
Consultants are processed through Workday as an Independent Contractor (Include a signed copy of the consulting services agreement, W-9, and Independent Contractor Checklist) |
"A consulting services agreement will be led by an individual or entity who shall follow:
• Are not involved in programmatic decision-making or direction of the study • Do not direct, carry out, or implement solutions • Do not require use of the facilities and resources of an organization or institution • Will not perform work as part of their institutional appointment • Do not have tasks or deliverables " |
"A consulting services agreement shall:
• Include a fee for the Individual or entity rendering professional services or technical advice (hourly rate x capped number of total hours) • Detail the work to be performed by the individual or entity • Require the individual or entity to carry general liability insurance at the time of agreement execution • Consultant operates in a competitive environment, where similar services are also provided to other companies • The terms and conditions of the prime award do not flow through to the consultant • If consultant is an individual they must have a social security number (entities require a tax identification number) • A consultant is considered a “work for hire” thus all intellectual property and copyrightable information is assigned to Florida Atlantic University" |
| SERVICE PROVIDER
(Independent Contractor/ Vendor) |
A services provider outlines specific terms and conditions in which there is a promise to provide a good or service in return for a fee. The entity providing the service is often referred to as a contractor or vendor. A contractor or vendor relationship exists when Florida Atlantic University has the right to control only the end result of a service, not the way it is performed.
https://www.fau.edu/controllers-office/documents/forms/independentcontractorform.pdf |
"A services provider may be a company or individual who shall:
• Provide a good or services of a specialized nature which cannot be performed by Florida Atlantic University • Provides a goods or services that are ancillary to the operation of the research project • Does not involve or have programmatic decisions-making authority • Operates in a competitive environment • Does not involve programmatic decisions " |
" A services provider shall:
• Provides service for a fee • Define duties to be performed or delivered • University has the right to control the end result of the service • Contractors/vendors have tax identification number • Indirect cost can be applicable to total costs of the goods or services • Individual(s) who performs the actual work is generally not known • No intellectual properties rights • Must meet all contractor/vendor requirement under Florida Statutes such as insurance, licensed, or certifications " |