Contracting Processes

Subcontracting Processes

Overview

Subcontracts are contracts issued to individual hired in a professional capacity to provide specific expertise in the technical area of the project or provide a specific service necessary to carry out the project for a specified period of time under a sponsored agreement. SU has the right to control or direct only the result of the work and not what will be done and how it will be done.

It is the PIs responsibility to coordinate this work with the contractor and to ensure the work has been completed as contracted prior to issuing payments. 

Please read the below guidance for more details for each stage of the subcontract relationship.

Budgeting a contractor in your proposal

Budgeting and Documenting a Contractor in a Proposal

• If the person or entity is identified and named in the proposal, a Contractor Letter of Commitment including a scope of work and total cost is required. Please note: The sponsor or program to which you are applying may have additional requirements or specifications for any named contractors or consultants.
• If the individual or entity is not known but a contracted service is necessary, conduct market research or obtain several quotes in order to budget sufficient funds for the services.

For all contractors, competitive bidding requirements must be met as outlined in the Procurement Policy for Sponsored Project funded equipment and services.

 

Issuing the subcontract

Procedure

1. The Principal Investigator or Program Director (PI/PD; or support staff) completes the OSP Contract Coversheet and sends to your assigned Sponsored Research Officer (SRO) with the scope of work and budget, for each contractor. 
2. OSP will review the form, scope of work, and budget, and coordinate with the Office of University Counsel as appropriate, complete the bottom portion of the form, sign, and return to you with the appropriate contract.
3. PI/PD issues contract to contractor for signature.
4. Return the contractor-signed agreement to your SRO for institutional approval through our standard process.
5. OSP will return the fully executed agreement to you. If the contractor is a sole proprietor as determined on the Contract Coversheet, the SRO will complete and send the Pre-Work Disclosures. Please share a copy of the contract and disclosures with the contractor. The contractor must sign and return the disclosures document - please share this with the OSP.
6. Set-up the contractor as a vendor within ProcureSU. This will require a W-9 from the contractor.
   1. Your divisional budget manager is a resource for this process.
7. Set-up the purchase order and upload the approved coversheet and executed contract as back-up documentation for payments to be processed.
   1. Your divisional budget manager is a resource for this process.

The completed and OSP-signed coversheet will be required to be uploaded with the fully executed contract to ProcureSU which will expedite the Controller’s Office review and approval process.

Subcontract invoicing & monitoring

• The contractor should submit invoices per the payment terms in the contract. 
• When an invoice is received, the PI/PD must review and approve the payment. It is the PI/PD's responsibility to ensure the contractor has completed the work as described in the scope of work and in the deliverable timeline outlined in the contract. 
• Submit the approved invoice through ProcureSU to issue the payment to the contractor. 
  • Your division budget manager is your primary resource for this process. 

If there are any changes to the contract - budget, scope of work, timeline, or the need to terminate - please contact OSP as soon as possible.