Subcontracts

OSP oversees proposals for two distinct types of Subcontracts: Outgoing and Incoming Subcontracts.

Outgoing Subcontracts occur when UTEP serves as the Pass-Through Entity (PTE) or Prime Awardee. UTEP’s Subcontract Team will process and administer the progress of the Subrecipients receiving funds. Questions regarding Outgoing Subcontracts should be directed to Subkproposals@utep.edu.

Incoming Subcontracts are sponsored projects in which UTEP will serve as a Subrecipient on another organization’s proposal/award. Research Administrators (RA) are responsible for processing these types of Subcontracts as incoming awards. A Notice of Intent is required for all incoming awards. Questions regarding Incoming Subcontracts should be directed to OSP@utep.edu.

To maintain compliance with federal requirements and ensure stewardship of sponsored project funds, the subcontracts team regularly monitors subrecipient organizations receiving pass-through entity (PTE) funds under UTEP prime awards. The monitoring of a subrecipient performance, financial controls and compliance is a shared responsibility between the Principal Investigator (PI), the Office of Sponsored Project’ (OSP) Subcontract Team and the Grant Management Accounting (GMA) team.

The Subaward lifecycle begins when documents are requested and ends when the SOW is satisfied, the final invoice is paid and the subrelease is signed and filed.

Subaward Negotiation

Once a prime award is accepted and processed by UTEP OSP and GMA offices, the RA will notify the Subcontract Team if a prime award includes Subaward funds. The subcontract team will reach out to the PI to confirm that the Subaward relationship can begin and if any changes to the SOW, Budget or key personnel have happened since proposal time. The Subcontract Team will draft a subagreement, include any special conditions, and negotiate pertinent terms with the subrecipient. All subagreements include a restriction on Carryovers by the PTE regardless of agency restrictions. Once both parties agree, the document is executed through Institutional Contract Management (CLM). UTEP utilizes FDP templates for all federal awards and UTEP Research Subaward agreements for all others. Once all processes are complete, our offices will distribute the fully executed documents to the UTEP PI and the Subrecipient team.

Subaward Management

During the lifetime of an award, the Subcontract team will initiate amendments for single and multi-year awards, such as:

• Additional Allocations	• Additional Budget Period	• No-Cost Extensions (NCE)
• Change of PI	• Revised SOW	• Deobligation of Funds
• Early Termination	• Revised Budget	• Carryover Requests

The subcontract team will also monitor:

• Financial and Technical progress

• Burn-Rate of Obligated Funds

• Conduct Annual Audit Reviews

The team will communicate if issues arise that warrant adding additional restrictions to a subrecipient to the PI.

Subaward Closeout

During closeout, the Subcontract team emails subrecipients 60 days (60) prior to the end of a Subaward to remind them of the final invoice due date and sub release documentation. Final invoice and closeout will not be processed until UTEP PI confirms that all work from a subrecipient has been satisfied as per SOW.

• Elizabeth Quezada-Lung - Assistant Director
• Belinda Gonzalez - Subcontract Manager
• Morayma Marquez - Contracts and Grants Specialist III
• Isabel Millward-Pena - Contracts and Grants Specialist III
• subcontracts@utep.edu

Once the potential subrecipient is identified and it is determined that a Subcontract is the appropriate mechanism, the PI will request that the OSP office obtain the subrecipient proposal elements from the subrecipient. Using the web-based UTEP Subrecipient Portal, the OSP Subcontract Team will route a request for documents to the Subrecipient’s PI and Office of Sponsored Projects.

The standard documents requested include the SOW, F&A, Budget Justification, Facilities, 3B FDP, and Equipment and Resources. Other elements may be required depending on sponsor: Budget template, Bio-Sketch, C&P, Letters of Support, etc. Please note that all documents must be submitted through the UTEP subrecipient portal. When corrections and/or revisions are necessary, the Subcontract Team will request them by email. Final documents are stored on the UTEP appropriate server and forwarded to the RA and PI for proposal submission.

Using the submitted documentation and the last audit, the Subcontract Team will generate a Risk Assessment. The risk assessment identifies the monitoring level the Subcontract Team will implement when the proposal is awarded.

The request for subrecipient documents must come from the RA using the “ Subcontract SCF Request Form” and emailed to subkproposals@utep.edu. To allow for enough time for the Subrecipient to submit documents, it is recommended that the PI notify the RA at least two (2) weeks before the proposal is due. 

Helpful links:

• Identifying the difference between a Subrecipient vs. Contractor (PDF)
• Subrecipient vs. Contractor Checklist
• Pre-Award Checklist for Subrecipients
• Link to Subrecipient Commitment Portal
• Link to FDP Letter of Intent

Subcontracts are issued only after a fully executed award is received by the prime sponsor. After OSP and GMA process the fully executed award, the award is then distributed to the PI and to the Subcontract Team, if Subcontracts are involved. The Subcontract team must ensure that every subaward agreement is clearly identified to the subrecipient as a Subcontract and is created using FDP templates for Federal Funds and UTEP Research Agreement for all others.

These forms must be drafted by an OSP Subcontract Team and routed for signature through CLM.

• Subagreement Drafted/Negotiated/Executed Process 
• FDP Forms
  • FDP Cost Reimbursement Subcontract
  • FDP Fixes Amount Subcontract
  • FDP Foreign Cost Reimbursement Subcontract

As required by the Subcontract, subrecipients will send invoices consistent with the award terms. Invoices will be emailed to the Subcontract Team (subcontracts@utep.edu), UTEP PI, and GMA (subkinvoices@utep.edu). Invoices are due no more than monthly, but no less than quarterly.  Principal Investigators (PI) are responsible, with the help of the Subcontract Team, for ensuring sponsored funds are spent in accordance with regulations, policies, and award terms.

• Invoicing Guidelines
• Sample Invoice PDF
• Provisions for High Risk Invoicing

UTEP is responsible for implementing and maintaining internal controls that provide reasonable assurance of Institute compliance with sponsor requirements for management and monitoring of the Subcontracts and Subcontracts it issues under its Sponsored Awards.

These guidelines and procedures are provided to assist faculty and staff in:

• Ensuring compliance with federal requirements to distinguish between Subcontracts and procurement actions and support compliance with state laws applicable to contracts.
• Complying with federal and other sponsor requirements for monitoring its Subrecipients.

See below PDFs for specific details on each step of the process:

• Subcontract Monitoring Procedures
• Code of Federal Regulations for PTE
• Carryover Requests
• FFATA Reporting

In accordance with the terms of the Subcontract, the subrecipient may be required to submit one or more of the following documents upon completion:

• Final Fiscal Report
• Final Technical Report
• Final Inventory of Property
• Final Statement of Inventions
• Signed Subrelease
• Small and Small Disadvantaged Business Report
• Final Audit Notification if subrecipient is subject to Single Audit