Subawards & Contracts (INCOMING)

• Submission
  • Routing Form
  • Statement of Work (SOW)
  • Detail Budget and Budget Justification
    
  • Biosketch, and/or other forms required by originating sponsor
  • Letter of Intent (LOI)/Proposal Face Sheet
    The pass-through entity (PTE) will instruct you as to the type of form that needs to be signed by OSP.  This form serves as our certification that we have reviewed the materials requested and if awarded, we will abide by the prime sponsor’s policies and are prepared to negotiate the necessary agreement with the PTE.
    If the PTE does not have a form for this purpose, UTMB has its own Consortium letter that can be used.
  • Cost Sharing Form (if applicable)
    
  • F&A Waiver (if applicable)
  • Sponsor Guidelines

  *Please see Proposal Preparation for more information about the items listed above and OSP proposal review process 

• Negotiation
  • Contract received in the inbox. If the contract is received by the PI/Dept, forward it to a Contracts Analyst.
  • Search for the Subcontract Documents in the e-File
  • Review and negotiate (as needed)
  • Routed to PI/Dept for approval of T&Cs (SOW & Budget). If the contract dollar amount is different than what was proposed, a revised budget will be requested.

  Main areas of concern that require negotiations

  • Indemnification and Liability
  • Intellectual Property Rights/Ownership
  • Publication Restrictions
  • Foreign National Restrictions
  • Confidentiality
  • Governing Law/Venue
  • Federal Contracting Clauses – the “FAR”

  Some areas of negotiation require consulting with other UTMB offices that have specialized expertise such as Office of Technology Transfer, Office of Clinical Research, Office of Legal Affairs, UT System Risk Management, Grants & Contracts Accounting, and/or the PI’s Department regarding specific terms and conditions of the award.

  Due to this involvement, it can take an average of 30 to 60 days from receipt of agreement to full execution of that agreement.

  Delays

  The negotiation of a contract (or a non-standard agreement) is more time consuming because it includes processing time not only at UTMB, but also at the sponsor institution with which we are contracting. Once UTMB suggests changes, the agreement is returned to the sponsor for comment, leaving us with little influence over how quickly the other party will respond. Processing delays occur when:

  • Proposal docs not routed through PreAward
  • Under Staffing/Heavy Workloads
  • Prioritization and influx of awards (i.e., COVID19 funding)
  • Compliance Approvals Pending
  • Revised/Categorical Budget Needed
  • Language Revisions
  • Consulting with other UTMB Offices
  • Working with Foreign Entities
• Management & Amendments

  Research Accounting is the central office for the administration of all aspects of award management functions, such as assisting with sponsor regulations, billing and accounts receivable, financial status reports, award closeout and account reconciliation.

  Work with your Grants and Contracts Accounting Analyst to make any amendments to your subaward/subcontract, or if you have any questions.

• Award

  Once negations conclude and all parties agree, the agreement is fully executed.

  • Contracts analyst will complete the PO worksheet to submit to Research Administration (RA) team along with the fully executed subcontract/amendment.
  • The RA team reviews documents and submits the requisition through the approval process. The requisition will process electronically. Approval process varies depending on the amount of the outgoing sub.
  • Once the requisition generates the PO, RA will send it to Contracts to include with the fully executed document to the Subrecipient as well as the UTMB PI and support staff These documents are also attached in PeopleSoft and the eFile.

Subawards & Contracts (Federal)

• Sponsor Initiation
  • Sponsor identifies services it wants provided and issues a Broad Agency Announcement (BAA) or a Request for Proposal (RFP)
  • Opportunities announced through FedBizOpps.gov  or Grants.gov

  UTMB faculty  who want to respond to a BAA or RFP must still work through the Office of Sponsored Programs. Please follow the standard submission process and start with the Intent to Submit Form as soon as you know you will be applying.  

  Please contact Nancy Devino if you have any questions about submitting a federal contract.

   

• Application

  Federal contracts have two distinct components - the technical proposal and the business proposal.

  The technical proposal is the scientific element and is similar to a grant application. The business proposal is a detailed financial plan that includes pricing documentation and other elements.

  Technical Proposal

  Business Proposal

  Has established page limits Cover page, table of contents are inclusive of page limits Elements include: Statement of Work (Objectives, Approach, Methods, Schedule) Personnel (PI, Co-Investigators, additional personnel) Resumes of key personnel Human subjects Vertebrate animals Select Agents Information Security Sharing Research Data NIH Instructions

  Does not have page limits Elements include: Cover Page(NIH 2043) Cost/pricing detail (and documentation) Small Business Subcontracting Plan Offeror’s Point of Contact Certificate of Cost or Pricing Data Disclosure of Lobbying Activities Representations & Certifications Submission of Electronic Funds Transfer Information Statement of Financial Capacity Qualifications of the Offeror (general experience, organizational experience, performance history, pertinent contracts, pertinent grants) Subcontractor information Annual Financial Report Travel Policy

  Federal contracts must also allocate a portion of the project to be fulfilled by small businesses. The business proposal must also include a Small Business Subcontracting Plan that identifies a portion of the budget that can be sourced to small businesses. UTMB is held to these allocation and must show a good faith effort for not achieving these goals if they cannot be met.

  When drafting the budget, remember the following are not allowed:

  • Expensing of tuition
  • Travel to general scientific conferences
• Negotiation
  • Once the proposal is submitted, the sponsor may seek clarification on certain points.
  • UTMB will respond in writing with the clarification.
  • If there are differences, the sponsor and UTMB will need to reach an agreement before the award is made.
• Award
  • Contract is received in OSP, who works with the PI and sponsor to finalize the contract.
  • An authorized signing official signs the contract and returns to sponsor.
  • The contract will outline the period of performance and how funding will be distributed - either by milestones or schedule.
• Contract Management
  • Prior approval is required for ANY changes to the final contract agreement.
  • The sponsor's contract officer must approve:
    • Any change in key personnel
    • Any international travel
    • Any deviation in domestic travel of >10%
    • Purchase of equipment
    • Purchase of anything not originally detailed in budget
    • Adding a subcontract (also requires sending copy of subk to contract officer)
  • Rebudgeting is NOT allowed.
  • Carry forward of base funding to option periods is NOT allowed.
  • Reporting schedule will be outlined in contract. Some contracts require as frequent as monthly financial and technical reports. Grants & Contracts Accounting will complete the financial reports, and the PI is required to complete the technical reports.
  • Grants & Contracts Accounting will invoice the sponsor for reimbursements according to contract terms.
  • PI must monitor expenses and notify the sponsor when the budget is 75% spent.
  • All communication is strictly through the Institutional Authorized Official and the Sponsor Contract Officer.

   

• Roles and Responsibilities
  Federal Contracts Roles and Responsibilities

Subawards & Contracts (key terms)

• Business Proposal
  The portion of the proposal that outlines the financial pieces of the agreement. Includes all relevant documentation for pricing and sourcing, as well as Small Business Plan. There are no page limits on the business proposal, and the budget must be final - there is no rebudgeting allowed.
• Contract
  The legally binding agreement between a sponsor and institution that outlines exactly what the scope of work will be, how long it will take to complete and the cost. Changes to any piece of the contract, including time extensions, will require prior approval and an amendment to the contract.
• Contract Officer
  Primary contact at the sponsor for anything involving the award.
• Incoming Sub

  Another institution is the prime awardee and negotiates with UTMB to provide a portion of the project.

  For example, State School University needs UTMB to conduct the work on one of the awards at State School. UTMB will be the subawardee doing the work for State School, the prime awardee. 

• Outgoing sub

  UTMB is the prime awardee who negotiates with other institutions to provide a portion of the project.

  For example, UTMB needs an investigator at State School University to do part of the work on one of our awards. State School University will be the subawardee and UTMB the prime. 

• Request for Proposal
  A tool used by sponsors to announce funding opportunities that will result in a contract. They are listed on FedBizOpps.gov and Grants.gov.
• Statement of Work
  The part of the technical proposal that outlines specifically what will be done and in what timeframe. It outlines who will conduct the work and any expectations. This can also be called a Description of Services.
• Technical Proposal
  The portion of the award proposal that outlines the scientific elements, including the scope of work and exactly who will perform the work in the contract. Follows similar guidelines to federal grants and has strict page limits and other limitations.