Based on the Principal Investigator’s (PI) categorization of the collaborator, specific federal, state, and sponsor requirements will govern the lifecycle of the collaboration. The relationship must be accurately depicted in both the budget and scope of work (SoW) included in the proposal, as well as the resulting agreement[1]; otherwise the University risks financial and legal harm.
[1] Subaward Agreement – An award provided by a pass-through entity (Harvard University) to a Subrecipient to carry out part of a sponsored award. Subawards can be in the form of a grant or contract and require a detailed SoW and budget that specifies salary, fringe, supplies, and other direct costs, as well as applicable Facilities & Administrative (“indirect”) costs. Sponsored offices review and negotiate all Subawards.
Contractor Agreement (Vendor or Consulting Agreement) – A contract provided by Harvard University to a Contractor to provide goods or services as part of a sponsored award. Federal regulations require that competitive bids are sought from multiple Contractors whenever possible, and when the cost exceeds $10,000, but this is a best practice for all Contractor engagements. A detailed SoW specifying distinct deliverables and due dates may be requested. The budget should only include direct costs.