Subaward - Agreement Type
The University of Iowa (UI) issues outgoing subaward agreements for externally funded research projects. Below are descriptions of subaward agreement types:
- 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.
- 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.
- 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 firstname.lastname@example.org 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.