Subrecipient vs. Vendor vs. Consultant
If another institution is providing services to further the purposes of a sponsored award, UMBC must determine whether those services should be paid as a vendor agreement, consultant agreement, or subaward agreement. This determination is made by filling out the Subrecipient vs. Vendor vs. Consultant Determination Checklist that can be found on the OSP Forms webpage. It is important that the correct agreement is made so that the University stays in compliance with the federal regulations laid out in 2 CFR 200.331-333.
What is the difference?
A subrecipient does work that has a significant impact on the project. They play a key role in the design and completion of the project, have specific deliverables that are unique to the project, and require minimal supervision from the UMBC PI to complete their work.
A vendor provides a good or service that is not unique to the project – it is part of their usual services and is routinely provided to the general public. Vendors are usually for-profit entities.
A consultant is a business or individual who provides specific expertise that is required to complete the project. Their involvement is temporary and highly technical, and they typically provide their services to many different organizations. A consultant does not have any involvement in designing the project objectives or conducting the actual research, and does not serve as key personnel.
When should the determination be made?
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The checklist should be completed at the proposal stage and routed through Kuali with the rest of the proposal documents.
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If the need for a subrecipient/vendor/consultant is determined later, such as a subrecipient being added to a project after the grant has been awarded, the form should be submitted to OSP with any other documents required to approve the agreement.
Who should fill out the checklist, and how?
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The form should be completed by the PI, as they will have the most knowledge of the institution or individual’s role in the project and what their deliverables will be.
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If the institution is an institution of higher education, the organization will almost always be a subrecipient. If this is the case, the preparer can check “YES” at the top of the page and sign the document.
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If the preparer is unsure, or the organization is definitely not an institution of higher education, the preparer should check off “NO” or “UNSURE” and continue to fill out the form.
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The form has sections for each relationship – subrecipient, vendor, and consultant – and a list of questions in each section regarding their contribution to the project, how their role will be classified, and the work they typically perform.
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Once the form is completed, whichever section has the most “Yes” answers should indicate the correct type of agreement to use.
If you have any questions, please feel free to reach out to OSP at ospa@umbc.edu.