Subcontracting on Sponsored Projects Post-award
When it is determined that an outside organization or institution is requested to perform part of the research effort under a grant or contract, the principal investigator must prepare a "Statement of Work" and attach it to a "Request for Subcontract" form (PR-033) and send it to his or her assigned sponsored program officer. The sponsored program officer will assist in preparation of any requests for proposals and prepare the subcontract in accordance with the Research Foundation's subcontracting policies and procedures. Subcontracts are always awarded to an organization or institution, not to an individual. If a portion of the work is being done by an individual not affiliated with another organization and is not an OSU employee, that individual must be paid as a consultant.
Principal investigators are not authorized to obligate the Research Foundation or the university contractually and should not sign any contracts or agreements. All contracts and award documents are in the name of the Research Foundation and must be signed by an authorized Research Foundation signatory. Principal investigators risk incurring personal liability if they authorize a subcontractor to begin work and guarantee payment in the absence of an executed subcontract and purchase order. Additionally, the subcontractor is not authorized to perform any work prior to the issuance of a valid purchase order and subcontract by the Research Foundation.
Subcontracting falls under general contract law and requires that both parties mutually agree to the terms and conditions of a contract before performance begins. Therefore, it is necessary to obtain the subcontractor's written offer or bid with terms and conditions acceptable to the Research Foundation before a purchase order is issued. The signed offer or bid, the purchase order, and subcontract agreement become the necessary contractual agreements for purchase of a subcontractor's services.
Internal schedules for the establishment of a subcontract should include sufficient lead time for the procurement process, including preparation of the bid solicitation and sufficient time for response, bid evaluation, negotiations, final award, and performance of the subcontracted effort.