The University of Iowa (UI) issues outgoing subaward agreements for externally funded research projects.  Below are descriptions of subaward agreement types:

  1. Cost Reimbursement (most common subaward type): An agreement under which the subrecipient is reimbursed for allocable, allowable, and reasonable costs up to a specified maximum.  These subawards require detailed budgets that indicate the intended use of the funds by budget category (e.g., salaries, fringe, supplies, etc.). 
    Payment:  Subrecipient submits invoices to UI Grant Accounting (GAO) as costs are incurred and by budget category.

  2. Fixed Amount (rare subaward type; under special circumstances)A type of agreement under which the subrecipient provides a specific level of support without regard to actual costs incurred under the award.  A fixed amount agreement includes a firm price for delivery of a product or service, a clear scope of work, a reasonable cost estimate that is negotiated up front, and well-articulated deliverables.  For more information on cost reasonableness, visit the Cost/Price Reasonableness FAQ webpage. Accountability is based primarily on performance and results.  This type requires prior approval from federal agencies.
    Payment:  Subrecipient submits invoice based on deliverables or agreed upon payment schedule.

  3. Capitation (multi-site clinical trials) Based on case counts or number of beneficiaries according to the terms and conditions of the federal award (also referred to as a ‘Fixed Rate’ agreement by the NIH).  The budget and rate are often fully burdened (inclusive of all costs, including F&A). Capitation award amount totals are often unknown when the agreement is created.  Capitation is excluded from the Uniform Guidance cost principles.
    Payment:  Subrecipient submits data (e.g. case counts) to the UI department based on activities; UI department may need to submit an invoice on behalf of subrecipient to GAO to process payment. 


Other: If "Other,"  and you are not sure about the agreement type or you are interested in a type not described above, contact for further discussion.

Disclaimer:  DSP and GAO may add and/or change terms of the agreement after their documentation review.  Sponsor guidelines may affect allowability of subaward agreement types.

Please visit the FDP Subaward FAQs and Guidance Document for further information.

Reviewed May 2024