Using Subawards

Subawards allow another organization to perform some activities for your grant under your supervision. They enable collaborations between you—the recipient —and the subawardee. This arrangement does not involve NIAID.

You still include the details of the work in your application because the initial peer review committee needs to evaluate it (unlike a purchase contract).

Since subawards are legal agreements, your institution must draw up a physical document or consortium agreement that both organizations sign.

Funds from the recipient organization must flow directly from the recipient to the subawardee, meaning a subawardee cannot create its own subaward with a third party—a "third tier" subaward—using funds from the recipient. Think of subawards like the spokes of a wheel with the recipient in the center—a grant may have a number of subawards, but they must all be directly connected to the recipient.

Application and Budget Information

Recipients must establish a subaward with any outside organizations that perform grant-supported research activities.

For information on what to include in your application, read the Subawards (Consortium Agreements) for Grants SOP.

Managing Subawards

When it comes to managing subawards, NIAID's involvement and that of the recipient are different.

NIAID's role

NIAID's involvement in a subaward is minimal. We do not participate in establishing the terms of the subaward, nor are we responsible for enforcing adherence to those terms.

You need prior approval from NIAID to establish a new subaward after your grant has been awarded if either of the following is true:

• The subawardee is a foreign organization.
• The terms of the subaward would constitute a change in scope.

If you have a small business innovation research or small business technology transfer award, you also need prior approval to establish a new domestic subaward if it was not originally part of the peer reviewed and approved application. Refer to the July 3, 2024 Guide notice for more information.

Do not rely on your program officer and grants management specialist to communicate with your subawardee directly. NIAID staff are responsible for communicating through the primary recipient only.

Recipient responsibilities

In managing subawards, recipients are fully responsible for the following:

• All actions of the subaward related to the award
• All contact with NIAID

As the recipient, you (not the subawardee) are accountable to NIAID for the performance of the research project, spending of grant funds by all parties, reporting requirements, negotiating animal and human subjects assurances, and other obligations for the grant.

You and the subawardee are responsible for solving disagreements. The signed agreement is paramount—it should be the source for resolving conflicts.

When you write a subaward agreement, be sure to define expectations clearly and include a mechanism for settling disputes.

Keep the following in mind:

• You still need to play a substantive role in the research; you cannot just pass along funds to another institution.
• If we need information from your subawardees, we will contact you.
• If there's a problem with a subawardee, we will expect you to take care of it.
• You can add a subaward to your project anytime.

If you decide to work with consultants or collaborators, learn about Letters of Support.

Consortium/Contractual Arrangements

If you're working closely with a subawardee from another institution, your institutions may need a formal agreement of the terms of the collaboration. Such agreements typically include a breakdown of costs, such as personnel and supplies, as well as facilities and administrative (F&A) costs.

In your application thoroughly describe what each person will be doing. Your reviewers need enough detail to be able to judge whether there is sufficient expertise to conduct the project.

In the Consortium/Contractual Arrangements attachment to the PHS 398 Research Plan form, briefly describe the arrangement. State the roles of the people and organizations involved.

Do not include the text of the formal agreement itself in your application, your letters of support or your just-in-time documentation. The formal agreement is for your benefit. NIH does not request, use, or need a copy of it.

As part of your just-in-time documentation before award, we will ask you to provide a copy of the F&A rate agreement that the consortium/subaward organization established with DHHS. Learn more at Responding to Pre-Award Requests ("Just-in-Time").

Letters of Support