Oregon State University



The subaward process is used when OSU passes through a portion of the sponsored award to another entity for the purpose of programmatic effort on the project or when OSU receives a portion of a sponsored award from another organization. All the terms and conditions that are part of the primary award must be included in the subaward document. Signature of acceptance of these terms by the receiving entity is required.

Further guidance information is available for determining whether an activity is a subaward or procurement.

The following are not considered subawards.

  • Personal Services Contract: A Personal Services Contract (PSC) is with an individual and that individual is usually considered a consultant. They are paid a specific rate to deliver and we own what they deliver.
  • Employee: With an employee we direct and control the work whereas on a subcontract or Personal Services Contract, the entity (subaward) or person (PSC) is in the business of doing what we are hiring them to do and we do not control or direct what they do.
  • Fixed Fee: A Fixed Fee is established when there is a pre-determined rate that has been approved by the organization and that rate is applied to a standard process or procedure (such as testing).

A budget that includes a subaward to another organization must include the following:

  • a separate detailed budget signed by the sub-award's authorized official
  • a statement of work
  • a copy of the sub-award's negotiated indirect cost rate agreement included in the proposal (if subcontract budget is over $25,000 and if subaward has an F & A rate agreement)

When OSU is the organization receiving the subaward, we process:

  • a separate detailed budget
  • a statement of work
  • OSU Proposal Transmittal Form

All commercial subawards must provide a justification for a sole-source selection. This is retained with the university proposal file for audit purposes. University subawards do not require this.

Contact Info

Office of Sponsored Programs
Research Office
Oregon State University
B308 Kerr Administration
Corvallis, OR 97331
Phone 541-737-4933
Fax 541-737-3093
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