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Subaward Corner: Cost Reimbursement vs. Fixed Price Subawards

contractSubawards are issued to other entities under the guidelines stated in University of Tennessee Fiscal Policy, FI0230 Sponsored Projects and Subrecipient Monitoring Policy. This policy has been revised to reflect the changes that will be forthcoming in the new Uniform Guidance.

For the purposes of issuing subawards the University of Tennessee typically issues one of two types of subawards, either a cost-reimbursement subaward or a fixed price subaward.

When issuing a subaward we follow the prime agreement. Most federal assistance awards (grants) are cost-reimbursable awards. Contracts can be either fixed price or cost-reimbursable

Cost-reimbursable Subawards are usually used to purchase non-commercial goods, such as research and development awards, which is most of our research type awards.

The Office of Sponsored Programs works with the contract negotiator to determine the type of subaward that is needed and the template is used that corresponds with the correct type of subaward. We do not generally want to use a cost-reimbursement subaward under a fixed-price award because the university could be placed at higher financial risk.

If you have questions, please contact Terri Hollis in the Office of Sponsored Programs.

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