Sub-recipient or Vendor Relationship

Some agreements that are being paid using grant funds need to be processed by Sponsored Project Services (SPS). The chart below will help you determine if the transaction falls under a sub-recipient, handled by SPS, or a vendor relationship, handled by PCS.

Sponsored Projects Services

Purchasing and Contracting Services

Sub-recipients - If an entity fulfills the criteria for a sub-recipient a sub-award or sub-contract should be issued.

Vendors/Consultants - If an entity fulfills the criteria for a vendor or consultant a personal service contract or purchase order should be issued.

A sub-recipient is a person, institution, or organization bringing intellectual capital to the project, i.e., not selling a product or work for hire.

Commonly with a company selling a product or service or a person who holds her/himself out to the public for hire.

A sub-recipient provides substantive programmatic work. UO will assign a defined portion of the project’s intellectual activity to the sub-recipient to fulfill. Please contact SPS for further clarification.

Personal Services Contract: The consultant is not providing substantive programmatic work, however, work is beyond analytical work-for-hire normally conducted by a routine service provider.

Purchase Order: The vendor is not providing substantive programmatic work, but is analytical work-for-hire.

A sub-recipient will maintain control of the work to be performed under the sub-contract or sub-award. This includes taking full responsibility for programmatic decision-making for the subcontracted portion of the work.

Personal Services Contract: The consultant will work independently and maintain control of the methodology, however, the consultant must meet University requirements, usually of a professional or technical nature and on a short-term basis.

Purchase Order: The vendor providing services performed according to the University’s requirements.

A sub-recipients performance is measured against whether the objectives of the UO prime project were met.

Personal Services Contract: The consultant’s performance is measured against University requirements; however, results may have implications for policy and management-level issues.

Purchase Order: The vendor’s performance is measured against University requirements. Services are routine in nature and follow established procedures. These services deal with day-to-day operations and are repetitive.

Please email Sponsored Project Services or Purchasing and Contracting Services with any additional questions.