Penn State Subcontracting Issuance and Administration

1. Penn State Subcontracting Issuance and Administration Stacey Bucha, Negotiator - OSP Theresa Pietrowski, Lead Contracts Specialist – EOC 1

2. Subcontracting Issuance and Administration • Subcontract or Subaward • 2CFR ??? (formerly OMB Circular A-133) Compliance • What do you need to know? 2

3. Sponsored Lifecycle • 1.2.3.4.5. • Develop and Submit Proposal • Revise Budget and Scope • Receive Award • Request Renewal / Competing-Continuation / No Cost Extension • Submit Final Reports 3

4. Subcontracting Issuance and Administration 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 4

5. 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 5

6. Subcontracting Issuance and Administration • Subcontracts and Subawards: Processed through Office of Sponsored Programs, ARL or EOC. • Application of F&A: First $25K of Subcontracts/Subawards. 6

7. Subcontracting Issuance and Administration • 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. 7

8. Subcontracting Issuance and Administration • Subcontract/Subaward Selection • Sole Source • Single Source • Competitive Bid (ARL & EOC) 8

9. Subcontracting Issuance and Administration 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? 9

10. 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 10

11. Sponsored Lifecycle • 1.2.3.4.5. • Develop and Submit Proposal • Revise Budget and Scope • Receive Award • Request Renewal / Competing-Continuation / No Cost Extension • Submit Final Reports 11

12. Subcontracting Issuance and Administration • 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 12

15. Subcontracting Issuance and Administration 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. 15

16. Sponsored Lifecycle • 1.2.3.4.5. • Develop and Submit Proposal • Revise Budget and Scope • Receive Award • Request Renewal / Competing-Continuation / No Cost Extension • Submit Final Reports 16

17. Subcontracting Issuance and Administration • 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 17

18. Subcontracting Issuance and Administration 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 18

19. Subcontracting Issuance and Administration • Sample Final Invoice w/ Cumulative Costs

20. Subcontracting Issuance and Administration

21. Subcontracting Issuance and Administration 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.) 21

22. Subcontracting Issuance and Administration • 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? 22

23. Subcontracting Issuance and Administration • 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. 23

24. Subcontracting Issuance and Administration • 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) 24

25. QUESTIONS 25