A subaward (sometimes referred to as a subgrant when the prime award is a grant, or a subcontract when the prime award is a contract) is issued when two or more institutions collaborate to carry out a sponsored project. Unlike consultants, subrecipients perform a substantive portion of the programmatic or scientific work and are responsible for contributing directly to the project's objectives and outcomes. Outgoing subawards are subject to the indirect cost limitation established in UNM's Facilities & Administrative (F&A) Rate Agreement. If you need assistance determining whether an external collaborator should be classified as a subrecipient or a consultant, please refer to our Subaward vs. Consultant/Vendor Clarification Document
Note:
Subaward Procedures
Follow the steps below when UNM Health Sciences is proposing to issue a subaward OUT to another institution as part of a sponsored project.
STEP 1: Initiate the Subrecipient Commitment Process
The Principal Investigator (PI) and/or departmental staff should send the electronic Subrecipient Commitment Intake Form from the Department Request Forms Dashboard to the collaborating institution.
The form will request the following information from the proposed subrecipient:
Important: Request that the collaborating institution return all required documents at least three (3) business days before the department's internal proposal deadline to allow sufficient time for review and incorporation into the proposal package.
Step 2: Upload Subrecipient Documents
Upload all documents received through the Subrecipient Commitment Form to the applicable CLICK ERA Grants record.
The subrecipient's budget must be incorporated into the overall UNM proposal budget and will be reviewed by the Sponsored Projects Office (SPO) prior to proposal submission.
**Note: UNM Main Campus and UNM branch campuses are not considered subrecipients. Personnel at these locations should charge directly to the award, and an F&A Split should be completed, if applicable.
STEP 3: Award Setup
Once the sponsor’s Notice of Award arrives at UNMHSC, and is ‘Awarded’ by SPO and moved forward to Contracts & Grants Accounting, the Department will receive an auto notification prompting them to create a CLICK ERA Agreement record for each subrecipient. All subrecipient documentation from the Grant record must also be uploaded to the Agreements module.
The Department will be asked to provide an Award Budget Sheet (ABS) as part of the C&G Award Setup process. The subrecipient should be clearly included as a separate line item within the project budget.
Step 4: Subaward Drafting and Negotiation
The Sponsored Projects Office will review the submitted documentation and prepare the draft of the subaward agreement.
It is the Department’s responsibility to ensure that the correct subaward documentation is uploaded to the record.
SPO will coordinate any necessary negotiations with the collaborating institution and obtain required approvals prior to execution.
Step 5: Agreement Execution
The subaward agreement must be fully executed by both institutions before work may begin under the subaward.
Once fully executed, an electronic copy of the agreement will be provided to:
Step 6: Invoice Review and Payment
Following execution, the subrecipient will submit invoices to Contract & Grant Accounting (C&G).
C&G will review the invoice and route it to the Principal Investigator for verification and approval of the charges. Once approved, the invoice will be processed through Accounts Payable for payment.
**NOTE: IF any changes are required AFTER execution, please inform your SPO contact immediately to verify if a formal Amendment is necessary.
Outgoing “MONEY OUT” Subaward Proposal Checklist
The following documents are required when UNM Health Sciences proposes to issue a subaward to a collaborating institution as part of a sponsored project.
Required Documents
☐ Electronic Subrecipient Commitment Form
The collaborating institution must complete and certify the Electronic Subrecipient Commitment Form. The form captures key institutional information, including:
The partnering institution's Authorized Organizational Representative (AOR) will certify that the information provided is accurate and that the institution will comply with applicable sponsor terms and conditions.
Important: Federal regulations require subrecipients to maintain an active registration in SAM.gov and obtain a Unique Entity Identifier (UEI).
☐ Consortium Letter of Intent (if applicable) A separate and specific Consortium Letter of Intent may be required by the sponsor and should be signed by the collaborating institution's authorized official.
☐ Statement of Work (SOW)
A scope of work describing the subrecipient's portion of the project is required. While the subrecipient's activities may be incorporated into UNM's overall project description at proposal stage, a separate Statement of Work will be required for the subaward agreement after funding is received.
☐ Detailed Budget
A detailed budget for the subrecipient's portion of the project is required.
If UNM is preparing an SF424 R&R application, the SF424 R&R Subaward Budget Forms should be extracted from ASSIST or Grants.gov and provided to the collaborating institution for completion.
All budget amounts must be consistent with the amounts reflected in the Electronic Subrecipient Commitment Form.
☐ Budget Justification
A budget justification describing the proposed costs is required.
☐ Biographical Sketches for Key Personnel (as applicable)
Biographical sketches should be provided in the format required by the sponsor.
For DHHS proposals, biographical sketches must be prepared using the NIH Common Forms and generated through SciENcv. PDF biosketches created outside of the NIH Common Forms process may not be accepted by the sponsor.
NOT-OD-26-018 NIH Implementation of Common Forms
☐ F&A Rate Agreement
A copy of the collaborating institution's current Facilities & Administrative (F&A) Rate Agreement is required, if applicable.
Additional Documents That May Be Required
☐ Education on Protection of Human Research Participants Training Certificates (if applicable)
☐ Current and Pending Support / Other Support Information for Key Personnel (if requested by the sponsor)
Special Considerations for National Laboratories
National laboratories (e.g., Los Alamos National Laboratory or Sandia National Laboratories) may follow Department of Energy requirements that differ from standard university practices.
In some cases, the laboratory may not provide an F&A Rate Agreement and may instead provide only direct and indirect cost information. At the award stage, national laboratories may issue a Funds-In Agreement (FIA) rather than execute UNM's standard subaward agreement. The Sponsored Projects Office is familiar with these processes and will work directly with the laboratory to facilitate the collaboration.
Submission Notes
Below, we answer some of the most commonly asked questions about sub-awards. If you have a question which is not covered below, please contact Susan Ponce at (505) 272-9383 or via e-mail at HSC-Subawards @salud.unm.edu
A subaward is an agreement under which a recipient of sponsored funding (the prime recipient) provides a portion of that funding to another institution (the subrecipient) to carry out a substantive portion of the project's programmatic or scientific work.
The subrecipient is responsible for completing a defined scope of work, complying with applicable sponsor requirements, and contributing directly to the project's objectives. The prime recipient remains responsible to the sponsor for oversight of the subrecipient's performance.
If another institution will perform a portion of the proposed work, the subrecipient should be identified during proposal development.
At the proposal stage, departments should obtain the following from the collaborating institution:
These documents should be uploaded to the CLICK ERA Grants record and included in the proposal package submitted to the Sponsored Projects Office (SPO) for review.
Following award, SPO will prepare, negotiate, and execute the subaward agreement.
When another institution intends to include UNM Health Sciences as a subrecipient, the department should work with SPO during proposal development and ensure the proposal is routed through CLICK for institutional review and approval.
Commonly required documents include:
If funding is awarded, the prime recipient will issue a subaward agreement to UNM Health Sciences for review, negotiation, and execution.
A vendor (contractor) provides goods or services as part of its normal business operations and generally offers similar services to many customers.
A subrecipient performs a substantive portion of the sponsored project's scope of work and contributes directly to achieving the project's objectives.
Indicators of a Subrecipient Relationship:
Indicators of a Vendor Relationship:
A consultant provides professional advice or specialized expertise for a fee but does not perform a substantive portion of the project's scope of work.
Consultants typically:
Subrecipients, by contrast, perform a defined portion of the project and contribute directly to achieving the project's objectives.
Subrecipients should be identified as early as possible during proposal development.
Obtaining subrecipient documentation before proposal submission helps ensure accurate budgeting, proper F&A calculations, compliance review, and timely proposal submission.
Requirements vary by sponsor; however, commonly required documents include:
Refer to the Outgoing Subaward Checklist for complete requirements
Yes. F&A costs are assessed in accordance with UNM's federally negotiated F&A Rate Agreement and the sponsor's published policies.
For federal awards utilizing the Modified Total Direct Cost (MTDC) base, F&A is generally assessed only on the first $50,000 (or $25,000) of each subaward, unless sponsor requirements dictate otherwise.
Departments should consult SPO if they have questions regarding F&A calculations.
No. UNM Main Campus and branch campuses are part of the same legal entity and are not considered subrecipients.
Personnel at these locations typically charge directly to the award, and an F&A Split may be required when multiple UNM organizations participate in a project.
Yes. National laboratories, such as Los Alamos National Laboratory (LANL) and Sandia National Laboratories (SNL), often follow Department of Energy requirements that differ from standard university practices.
These organizations may not provide an F&A Rate Agreement and may use alternative agreement mechanisms. SPO is familiar with these arrangements and will work directly with the laboratory to facilitate the collaboration.
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