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Sponsored Project Contractual Agreement

A sponsored research project may include three types of contractors. A consultant, a Sub-Recipients and a regular vendor contractor.

  • Consultants - Is any person hired in a professional capacity to provide specific expertise in the technical area of the project for a specified period of time under a sponsored agreement. Generally the University recommends use of a Professional Services Agreement when collaborating with individuals for this service to the University overall. However, when a consultant is identified in a sponsored project and approved by the sponsor for a specific project, the sponsored project contractual agreement is used for the agreement and to process payments. 
  • Sub-recipients - Under 2 CFR 200.92, the Uniform Guidance, Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program.
  • Regular vendor/contractor - Provide goods and services within the normal business operations to many different purchasers.  The payment should be processed on a regular contract through the purchasing department regardless of funding source.

Contractors Paid on Federal Funds

The Uniform Guidance identifies specific standards in addition to the University’s requirements. They are the following:

§200.212  Suspension and debarment - contractors are subject to the non-procurement debarment and suspension regulations

§200.305  Payment - the University must make timely payment to contractors, and payments amounts can be withheld by the University from contractors to assure satisfactory completion of work

§200.318 General procurement standards - maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders

§200.319  Competition - must be conducted in a manner providing full and open competition consistent with the standards of this section. For consultants, at the Pre-Award stage in the recommendation for award, PIs must explain the selection methods

The University Policy

Although the University MAPP 04.01.01A does not apply consulting contracts funded by sponsored projects or grants, the guidance has specific requirements for content, format and processing of agreements in general.  

The standardized Sponsored Project Contractual Agreement template approved by General Counsel is available for investigators to use when preparing simple contract agreements for both federal and non-federal sponsored projects. 

The duration of any contractual transaction cannot extend beyond a cumulative period of five consecutive years, including renewal terms. The official with delegated authority must approve exceptions to this time period in writing.

Contracts are legally binding on the university only upon execution of the contract by the university official with delegated contractual signatory authority.

If a non-standard contract will be used for a transaction, then the contract must be routed to Office of Grants and Contracts for review by the Contracts Officers before execution and routing via PeopleSoft (PS) requisition.

Required Documentation on the Sponsored Project Contractual Agreement

The following documentation must be submitted to OCG for processing the agreement

  1. Contract Cover Sheet - Internal administrative routing sheet
  2. Nonresident Alien Information Addendum - To be completed by Nonresidents only
  3. Child Support Certification - For payment on state grants and contracts
  4. Post-Award Recommendation for Award Form - Used to summarize the basis of best value in selecting a particular contractor
  5. Pre-Award Recommendation for Award Form - Completed during budget preparation at the proposal stage
  6. PI Certification Memo
  7. No Boycott Israel Procedures - Grantee verification that it (1) does not boycott Israel; and (2) will not boycott Israel during the term of this Grant Agreement

Process for Completing and Routing the Sponsored Project Contracts

  1. Complete the standard agreement in accordance with the sponsor award document and send to the other party for signature.
  2. When a non-standard agreement is used, such as when the contractor agreement or changes to the standard agreement are made, first forward the agreement to OCG Contract Officers for review and negotiation before proceeding.
  3. Obtain all the other required PI and departmental signatures.
  4. Submit the agreement with all signatures, and the appropriate supporting document listed above via People Soft RC730 requisition to OCG
    1. The PS requisition must use one of the following account codes that roll up to budget account B5023 – Contracting of Services:
      1. 52108 - Other professional services - professional services rendered on a fee basis by a person or firm recognized as possessing a high degree of learning and responsibility in any area not categorized under other subcodes [account code].
      2. 53857 - Services under a written contract not classified under any other account.
  5. When the Office of Contracts and Grants (OCG) receives the requisition via PeopleSoft (PS) workflow it will be reviewed for accuracy, appropriateness, availability of funds, and for compliance with sponsor requirements and OCG will create a Purchase Order (PO) in PeopleSoft in order to encumber the funds on the grant. 
  6. A copy of the PO will be sent to the department. 
  7. Payments are initiated by an originating unit on a PO voucher sent to Accounts Payable.
  8. When there is a change to the agreement, an amendment is generated by the department and submitted to OCG for review and encumbrance in the same manner as the original agreement.  The amendment must be accompanied by the original agreement.
  9. Late submission of a contractual agreement must be accompanied by a completed late justification form. The agreement is considered late if the effective date or start date is before the date on which the agreement was signed by all parties.

Other Non-Standard Contract Agreements: 

Honoraria are unallowable on federal research grants when the primary intent is to confer distinction on, or to symbolize respect, esteem, or admiration for, the recipient of the honorarium.  NIH grants policy specifically prohibits this cost.

Speaker Fees are an allowable payment for services rendered, such as a speaker’s fee under a conference grant, the presentation of research results, the reading of papers, or the participation in workshops and seminars when the cost is budgeted on the award or prior approval is received from the sponsor. When the Speaker Agreement is used, a requisition routed via OCG on the RC730 business unit and use of the account codes referenced above (52108 or 53857).