Subaward vs Procurement
Subaward
Does the entity receiving grant funds:
- Have a separate scope of work & budget?
- Have responsibility for deliverables or discrete portions of grant activities?
- Have programmatic decision making?
- Have responsibility related to the program of their organization rather than providing regularly available goods/services to MSU?
- Have responsibility for assisting in completion of a project deliverable and/or technical report?
- Have the right to publish project results or serve as a co-author?
- Have responsibility for adherence to applicable program compliance requirements?
If your answers to these questions are "Yes", this is a subaward.
Procurement
Does the entity receiving grant funds:
- Provide goods and services your project needs within their normal business operations
- Provide similar goods or services to many different purchasers? (this includes fabrication of new goods, consultants, editors, etc.)
- Operate in a competitive environment? (a for-profit organization or an entity/university providing a testing service)
- Not subject to terms and conditions/compliance of the sponsoring agency?
- Not involved in the programmatic work of the project, including project deliverable or technical report?
If your answers to these questions are "Yes," this activity should be classified as a procurement from a vendor.
If you have questions, please contact Office of Sponsored Programs or University Procurement