Establishing a Subrecipient Agreement

Establishing a Subrecipient Agreement

UAB subrecipient agreements (third-party agreements) must be in compliance with all applicable laws, regulations, and terms and conditions included in UAB’s prime award(s). Certain procedures have been established to ensure proper monitoring of these agreements.
Effective Date:
None Assigned
Administrative Category:
Applies To:
Faculty, Staff
Material Original Source:


UAB is responsible for the programmatic and financial monitoring of its subrecipients. A subrecipient is a third-party organization performing a portion of work on a sponsored project received by UAB. The following procedures have been developed to ensure that subrecipient agreements are developed and conducted in compliance with all applicable laws, regulations, and terms and conditions included in UAB’s prime award(s).

Prior to submission of a grant or contract proposal to the sponsor:

1. The UAB Principal Investigator must identify the subrecipient in the proposal. 

2. The proposal must contain the subrecipient’s scope of work and budget in sufficient detail to comply with the sponsor’s requirements and to allow UAB to evaluate the ability of the subrecipient to maintain compliance with the terms and conditions of the award. 

3. The sub-recipient’s proposal must include a letter of intent, signed by the subrecipient’s institutional official, stating that the subrecipient intends to participate as a UAB subrecipient. 

4. The proposal must contain a copy of the subrecipient’s most recent Colleges and Universities Rate Agreement or other federally negotiated rate agreement if the subrecipient’s budget requires reimbursement of facilities and administrative (F&A) costs based on its federally negotiated rate. If the sponsor’s policy limits the reimbursement of F&A costs, the subrecipient must agree to comply with the sponsor’s policy. Include the policy with the proposal.

Once the proposal has been awarded:

1. UAB will not knowingly issue an agreement to a subrecipient or its key personnel who are debarred, suspended, or otherwise prohibited from receiving federal grants or contracts. To prevent such issuance, the Office of Sponsored Programs (OSP) will check the debarment and suspension status of the subrecipient and all key personnel named in the budget.  

2. Regulatory approvals, such as Institutional Review Board (for humans as research subjects) and Institutional Animal Care and Use Committee (for animals as research subjects) approvals, must be obtained prior to issuing a subrecipient agreement.  

3. OSP will write, negotiate, execute, and distribute the subrecipient agreement and any amendments to the subrecipient agreement on behalf of UAB.