Guide to Services
- Research Administration
- Clinical Trials
- Subcontract and Vendor Contract Services
- Subaward Services
- Consulting Agreements
- Lease & Renovation Services
- Regulatory Affairs
- Human Resources
- Occupational Safety and Health
- Purchasing & Reimbursements
- Financial Reports
- Graphics & Communications
- Information Technology
- Technology Transfer & Commercialization
Subcontract and Vendor Contract Services
The HJF Subcontracting Department assists in vendor contracts under contracts, grants and cooperative agreements. For leasing or rental agreements, please see the HJF Lease & Renovation Services. For consulting agreements, please see the Consultant Agreements page.
Please visit Subaward Services for assistance with subrecipient agreements under an assistance agreement.
Differentiating between a Subrecipient/Subcontract and a Vendor Contract
Research projects generally include the need to enter into agreements with external entities (third parties), whether it is simply purchasing lab supplies or conducting a large scale multi-site clinical trial. The majority of transactions are easily categorized as either a collaborative subaward or a procurement of goods and/or services. Occasionally transactions fall in to a ‘grey area’ where it is not clear how to identify the correct funding mechanism.
Mischaracterizing the transaction can have serious ramifications, including significant delays, increased administrative burden, incorrect indirect cost budgeting, inappropriate/inadequate intellectual property provisions, and failure to comply with the terms and conditions of HJF’s award and internal policies, as well as the applicable regulations and laws. These issues can negatively impact the investigator’s project, result in audit findings and increase the level of risk to HJF and the PI.
The following guidelines are provided to assist you in the proper identification of these relationships when preparing proposals and expending funds.
A CONTRACTOR (Vendor) is issued a Contract and/or Purchase Order based on a request received by HJF for the purchase of goods and services, including “Professional Services” or “Consulting Services."
- A Contractor provides similar goods and services to multiple customers as part of their routine business operations (work for hire);
- A Contractor competes for customers with other like providers;
- A Contractor does not retain intellectual property or copyright to the deliverables;
- Cost sharing is not required of a Contractor;
- Joint authorship of publications is not sought by Contractors; and
- The general terms of the Prime Award do not flow down to the Contractor.
[ORACLE Category(s): Service Agreements or Vendor Contracts]
To help distinguish between a subcontract and a vendor agreement, please use the attached HJF Form 406 in the link below. The form must be completed and attached to a requisition in Oracle for contracted services
Competition in Subcontracting Policy
To ensure HJF provides free and open competition in accordance with federal rules and regulations, HJF is updating its policy and procedures on procurements/subcontracts of various amounts, as well as sole source justification.
- Small purchase threshold ($10,001-$250,000: rate quotations with cost or price analysis)
- Sealed bids (>$250,000: formal advertising, price is a major factor)
- Competitive proposal (>$250,000, fixed price or cost reimbursement, request for proposal (RFP) with evaluation methods)
Sole Source Procurement
The Uniform Guidance (UG) has limited the use of sole sources to four distinct justifications:
- Product/service is only available from a single source;
- Public Emergency Procurement;
- Federal Awarding Agency Authorization: the awarding agency specifically authorizes a non-competitive procurement after a written request from the Non-federal entity (Principal Investigators should contact HJF for guidance and assistance in making requests to sponsors); and
- Inadequate competition after solicitation of multiple sources.
These changes will result in increased scrutiny for ALL sole source justifications. The most significant change to the sole source section of UG versus the previous OMB circulars is that “continuity of research” is no longer an acceptable justification for sole source approval.
Download the Sole Source Justification form here.
Establishing a Subcontract
Once an award is set up in the HJF accounting system, you can establish a preapproved subcontract under a prime contract by following these steps:
- Enter a requisition in Oracle iProcurement for a "New Request for Services."
- Enter “SUBAWARDS/SUBCONTRACTS” as the expenditure "Category" for the service request.
- Attach to the requisition the completed HJF Form 406, as well as a Statement of Work, budget, budget justification and quotes or other evidence of competition. For subcontract actions greater than or equal to $10,000, where at least two competitive bids, quotes or proposals from multiple sources is not possible and only one contractor is capable, authorized or available to perform the required work, a sole source justification should be developed with HJF Subcontracting.
- Use the Statement of Work (SOW) format provided above, which is tailored for subcontracts.
HJF must obtain sponsoring agency approval prior to executing a subcontract if the specific subrecipient was not identified in the proposal or previously approved. Costs associated with subcontracts have the HJF Subaward/Subcontract Overhead Rate applied. No other overheads or General and Administrative rates are applied to Subcontracts.
Establishing a Vendor Contract
Uniform Guidance Starts 10/1/2018
This is a reminder that the procurement regulations under Uniform Guidance will go into effect on 10/1/18. For more information on UG, please review the material on this site. These updates cover the major points that will most affect the HJF community.
You can establish a vendor contract by following these steps:
Enter a requisition in Oracle "iProcurement" for a "New Request for Services." Enter "VENDOR CONTRACT" as the expenditure "Category" for the service request.
- Attach to the requesition the completed HJF Form 406, as well as a Statement of Work, budget, budget justification and quotes or evidence of completition. For vendor contract actions between $10,001 and $250,000, where at least two competitive bids, quotes or proposals from multiple sources is not possible and only one contractor is capable, authorized or available to perform the required work, a sole source justification should be developed with HJF Subcontracting.
- Procurements over $250,000 will be put out for competitive bidding.
- Vendor contracts have the full HJF G&A indirect cost rate and any applicable overhead rate applied. The HJF Subaward/Subcontract Overhead Rate is NOT applied to vendor contracts.
- Use the Statement of work format.
If you need assistance in source selection, a subcontract manager can assist with identifying a list of appropriate vendors.
Extending the Term of a Subcontract
HJF representatives will be in contact prior to the expiration of a subcontract. To extend the term of the subcontract beyond its expiration date, submit a requisition in Oracle iProcurement for a “Modification for Existing Services.” Request an extension, as well as the amount of additional funds, if any, to be added to the subcontract or vendor agreement, two weeks prior to the expiration date. Also attach a revised statement of work, budget and budget justification to the requisition if applicable. Include a revised SOW if necessary, if there are any changes to the scope, deliverables, milestones or acceptable criteria. Clearly identify in the new SOW the full revised SOW, as opposed to just noting the changes (for example, if the SOW will be modified to add an additional 100 samples to an original 100 samples, the revised SOW should indicate that the new deliverable is 200 samples).
Remember that the subcontract or vendor agreement period of performance cannot extend beyond the end date of the HJF's award agreement from the sponsor.