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Office of Sponsored Programs (OSP)



A subaward s a formal legal agreement between the UW and another organization. This may be referred to as an Outgoing Subaward. This agreement is used when a substantive portion of the programmatic work outlined in a UW proposal is conducted at another organization. Commonly, the other organization is another education or research institution, but can be any organization outside the University.

Each subaward should be listed separately within the proposal budget and will have separate supporting documents.

Required Documents

Proposals must have five items included for each subaward:

  • Letter of Intent (LOI) or PHS398 Face Page signed by the Authorizing Official of the subrecipient institution
  • Scope of Work (SOW), this should include background info/objectives & work to be performed
  • Budget
  • Budget Justification (BudgJust):
  • Must tie specifically to Budget Details.
  • Negotiated F&A rate agreement that validates what subrecipient entity is allowed to receive as F&A.

This is documented in GIM 7, Preparing a Proposal that Includes Proposed Subrecipients.

Budget Development

See the budget development guidance on the Budget Development » Other Contractual Services page. Subawards should be listed in the UW budget using sub-object code 03-62. Each subaward should be listed separately, and the F&A should be calculated following GIM 13 guidelines.

Communicating with the Sub-PI

When a UW-PI decides to include a subaward in the proposal, clear communication with the Sub-PI is critical to ensure all necessary documents are received signed by the institutional official with enough time to route and submit the proposal at the UW.

  1. Provide a deadline to the subrecipient to receive final subaward documents which allow enough time for the documents to be incorporated into the UW proposal, attached to the eGC1 and routed for review in accordance with GIM 19 deadlines.
  2. Request all required documents according to the sponsor program announcement.
  3. Ensure the scope of work is detailed enough for reviewers to understand the value of this section of the project.

Calculating Facilities & Administrative Costs (F&A)

See the Budget Development » Facilities and Administrative Costs (F&A) webpage for an overview on UW F&A.

Subaward F&A Calculation

Each subaward will include both direct and F&A costs (when allowed by the sponsor). The negotiated F&A rate for the subaward institution will be used for this calculation. If the subrecipient does not have a negotiated rate, and in the absence of an F&A rate cap by the originating sponsor, the maximum F&A rate the subrecipient may use is 10% Modified Total Direct Costs (MTDC).

F&A Rate Cap Flows Down

If the originating sponsor (prime sponsor to UW) has instituted a published policy that caps the F&A rate it will award, the UW will, in turn, flow down that cap to the subrecipient. A subrecipient may not request an F&A rate that exceeds this cap in its budget to the University.

Calculating UW F&A on Subawards

The UW PI then incorporates all subawards to this the proposal as separate line items. When the base type is Modified total Direct Costs (MTDC), each outgoing subaward anticipated in a UW budget will have UW F&A charged on the first $25,000 of the subaward for all project periods in the competing segment.

Requesting Subawards

Confirm Authorizations

Request Subaward

Contract Execution & Approvals


  • Preparer, Contact & all of approval flow are notified throughout approval process via Ariba.
  • Preparer & Contact receive emails when: 1) CR has final approval with BPO#, 2) when an invoice is ready to be received and 3) when expiration dates and/or funding levels reach the level specified on CR by the preparer.

Receipt & Payment

  • Subrecipient invoices against BPO# via Ariba.
  • Dept. reviews invoice & secures internal approvals prior to “receiving” the invoice.
  • Once verified, contact “receives” invoices against the BPO. This approves the invoice for payment, routes to Accounts Payable and releases the funds.
  • Departments may need to request an invoice be rejected via Procurement Service prior to “receiving”. Do not receive any invoices until rejection confirmed.
  • Review detailed receiving instructions from Procurement Services.


  • Departments make changes to active BPO(s) in order to route for review & execution.
  • Change request(s) are routed through the same approval path as the original request. Upon execution, new version suffix is added (e.g., V2), and modified contract attached.
  • Learn more about the modification steps.