Instructions for Processing Subcontracts
Subcontracts usually need to be set up immediately after the receipt of an award. You can expedite the subcontract process by gathering most of the necessary information prior to actual receipt of the award.
UNM policy on subcontracts is in the University Business Policies and Procedures manual. Please read the policy to understand what needs to be done at the proposal stage.
New Subcontracts:
The Office of the Vice President for Research and Economic Development (OVPRED) prepares subcontracts to corporations, other universities, non-profits; and NOT to individuals. A formal subcontract document is prepared is the amount will be $10,000 or greater for the duration of the contract or grant. For subcontracts less than $10,000, you can process an requisition directly through Purchasing.
In order to set up a subcontract, you will need the following information:
- A fully executed award and UNM account number
- Purchase requisition signed by the principal investigator and the Contract and Grant Accounting Office (CGAO)
- Sole source justification
- Completed subcontractor info sheet
- Statement of work for the subcontract
- Budget for the subcontract
If the subcontract is not to another university or school and the work appears to be of the nature that it could performed by other companies, have Purchasing (Lynn Nelson) review the PR, sole source justification and statement of work to advise whether the procurement needs to be put out to bid. If Purchasing does decide it needs to be bid, OVPRED will not be asked to do a subcontract until the subcontractor is selected.
The Subcontract Information Sheet is very important in that it details what needs to go into the subcontract document. You can ask your Contract and Grant Coordinator (CGC) in OVPRED to print you a draft of the boilerplate for your review.
Once the subcontract packet is prepared by the CGC, two copies will be mailed to the subcontractor for their authorized signature. The principal investigator will be sent a copy of what is being sent to the subcontractor. After the subcontract document is signed and returned to OVPRED, the CGC will obtain UNM signature and send the packet on to CGAO, who will in turn send it on to Purchasing for issuance of a Purchase Order. According to UNM policies, the subcontract is not a legal document until a PO has been issued.
Subcontract Modifications:
Changes should be processed on a PO modification form. Attached revised Statement of Work, Budget, or Subcontract Information Sheet, if necessary.
The subcontractor may call to negotiate terms on the subcontract. Your CGC will be able to handle these negotiations either directly with the subcontractor with your input.
Any questions regarding the processing of subcontracts should be directed to the Contract and Grant Coordinator for your department.
Subaward Request form (with form fields) (.DOC)
Subaward Request Form (print version) (.DOC)