Penn State Subcontracting Issuance and Administration

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Penn State Subcontracting Issuance and Administration

Stacey Bucha, Negotiator - OSP

Theresa Pietrowski, Lead Contracts Specialist – EOC

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Subcontracting Issuance and Administration

• Subcontract or Subaward

• 2CFR ??? (formerly OMB Circular A-133) Compliance

• What do you need to know?

Sponsored Lifecycle

3

Pre-Award Post-Award

Submission

Review

Negotiation

Period of Performance

Reconcile&

Closeout1st Period

2nd Period

3rd Period

Extension

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Definitions:

• Subcontract: acquisition or procurement to perform substantive sponsored project effort (subcontractor).– Concerned with more than the end product, unlike a Purchase

Order.– supports contract or grant– deliverables– monitor performance and/or cost– negotiated terms and conditions

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Subawards/Subcontracts

• Subaward: financial assistance to perform collaborative sponsored project effort (Subrecipient).

– Concerned with more than the end product, unlike a Purchase Order.

– Determines who is eligible to receive financial assistance– Has performance measured against whether the objectives of

the federal program are met– Has responsibility for programmatic decision making– Has responsibility to adhere to applicable federal program

compliance requirements– Uses the Federal funds to carry out a program of the

organization

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• Subcontracts and Subawards: Processed through Office of Sponsored Programs, ARL or EOC.

• Application of F&A: First $25K of Subcontracts/Subawards.

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• If prime award is a contract (procurement)– All lower tier awards will be procurements, i.e.

Subcontracts/P.O.’S/consulting agreements.

• If prime award is a grant (financial assistance)– Lower tier awards may be either

procurements or subawards.

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• Subcontract/Subaward Selection – Sole Source– Single Source– Competitive Bid (ARL & EOC)

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Questions that might help:– Will the entity be a co-author on any publications?– Will the entity own any part of the work?– Is the subrecipient subject to A-133 (2CFR???); If not,

are they fiscally viable?

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Subcontracting Issuance and Administration Additional questions to ask when considering a Subcontract:• What program (specific Contract / Grant Number) will be supported?• What are the services/supplies to be procured? Is this clear?• Has a technical project plan been approved by and funding authorization received?• If identified as ‘sole’ source, why? Has a ‘Justification for Other than Full and Open Competition’

form been completed? Why is this subcontractor uniquely qualified? Was there an effort to identify other alternative sources? Can/should this be competitively bid?

• Is the intended subcontract work subject to export control?• Will the RFP include classified documents for proposal review/preparation? And/or will the

intended subcontract work be classified? If yes to either, what classification (Confidential – Secret – Top Secret)? Has a DD254 Form been prepared for the pending subcontract?

• Will PSU transmit any proprietary information with the RFP? If yes, is the appropriate PIDA in place? Will PSU transmit proprietary information during performance of resulting subcontract? If yes, either a PIDA to be in place OR does the resulting subcontract contain specific non-disclosure language?

• Will any Government Furnished Equipment/Materials be required?• What Key Personnel should be utilized by the selected subcontractor?• RFP Package to include:

– Cover Letter– Conditions of Offer– Statement of Work– Delivery Schedule– Representations and Certifications– Closeout Forms and Information

Sponsored Lifecycle

11


Submission

Review

Negotiation


Reconcile&

Closeout1st Period

2nd Period

3rd Period

Extension

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• Request to Issue a Subcontract/Subaward– Sole Source vs. Competitive

• If joint proposal/funded as proposed, state so under sole source selection

– Foreign Organization/Institution– Attach copy of proposal package, to include:

• Cover page/certifications with appropriate signatures

• Statement of Work

• Detailed Budget

• Copy of F&A (IDC) Agreement

– Forward to OSP for processing

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OSP Processing Responsibility:

• Sub request logged into SIMS and assigned to negotiator and A-133 Audit review performed by OSP Subcoordinator (Michele Kuhn)

• When necessary, a more detailed audit review is performed by the Subaward Policy Specialist (SPS) (Jennifer Taylor-Hillebrand)

• Negotiator reviews prime award and drafts subcontract or subaward (based on type of prime award)

• When required by prime sponsor, subaward/subcontract forwarded to sponsor for approval

• Subcontract/subaward forwarded to subrecipient for signature

• OSP negotiates changes requested by subrecipient (if any)

• Upon receipt of fully executed subaward/subcontract, OSP distributes/scans fully executed document

NOTE: This process is different for both ARL and EOC, due to the nature of the work being performed at those facilities.

Sponsored Lifecycle

16


Submission

Review

Negotiation


Reconcile&

Closeout1st Period

2nd Period

3rd Period

Extension

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• PI/College Responsibilities– Funds are available– Sub is performing work and submitting

reports/deliverables as required– Invoices are submitted in proper format and in

accordance with the requirements of the subcontract for the work performed to date

– Process Sub payments via IBIS

• OSP Responsibilities– Respond to questions/assist with problems

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Closeout• PI/College Responsibilities

– Prepare Certification of Technical Completion and submit to OSP (along with Final invoice)

– Verify invoice is marked “FINAL” with CUMULATIVE COSTS.

• OSP Responsibilities– Verifies A-133 compliance of subrecipient– Negotiator conducts desk audit of costs incurred vs. budget.

Questions regarding costs incurred addressed to subrecipient or College/Unit as appropriate.

– Negotiator verifies all required closeout documents have been received.

– Authorizes College/Unit to release final payment.– Closing statement distributed.

NOTE: ARL & EOC follow a slightly different closeout process


• Sample Final Invoice w/ Cumulative Costs

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International Subawards• Fixed-Price Agreements

• Advance payments or milestone payments based on receipt of reports or deliverables are necessary. Payment to be made in U.S. dollars. (Ex: Exchange rate fluctuations – for budgets prepared in 2002, the South African Rand subsequently lost ½ its value – how to do the same work for ½ the money?)

• What type of entity is the international subrecipient? - government entity? A university? Other?

• Any licenses, approvals, insurances needed? And from whom? (Note: In addition to foreign approvals, NIH must obtain State Department approvals for subawards with foreign collaborators.)

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• Any concerns relative to tax issues, export controls, legal issues?

• What is the culture of research administration in the collaborator’s country?

• How developed are the structures that will support the research (audit and accounting, reporting, human subjects (if applicable), animal welfare (if applicable), conflict of interest?

• Can the subrecipient administer a federal award in compliance with the (federal) requirements?

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• Be aware of cultural differences (different languages, work climate, socio-economic differences, civil and tribal differences, complicated bureaucracies, etc.) that may affect the way in which the subaward is administered.

• Consider the end of the project as you set things up at the beginning.

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• PSU Subcontract Policy:– RA16– OSP Procedures:

http://grants.psu.edu/PSU/Res/Subpro.pdf

(currently being revised)

• PSU Subaward Policy:– RA19– OSP Procedures:

http://grants.psu.edu/PSU/Res/SubawardPro1-03.pdf

(currently being revised)

http://grants.psu.edu/PSU/Res/Subpro.pdf

http://grants.psu.edu/PSU/Res/SubawardPro1-03.pdf

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QUESTIONS

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Penn State Subcontracting Issuance and Administration

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