Vendor vs Subcontractor

While Uniform Guidance does not require Rice to monitor the activities of vendors, it does require the university to monitor the activities of subrecipients as necessary to ensure reasonable compliance with the terms and conditions of the federal award. Therefore, correct determination of the proper classification ensures that Rice complies with the sponsor’s subrecipient monitoring requirements as well as the Rice policy and procedures related to subrecipients. 

Additionally, determining the appropriate budget classification during the proposal stage is essential to calculating the correct budget for facilities and administrative (F&A) costs. For most proposals, F&A is applied to only the first $25,000 of each subaward, while 100% of vendor payments for non-capital costs are subject to the full F&A rate.

Templates, Tools, and Job Guides

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Policies & Regulations

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Training Materials

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University Guidance

1. Guidance - Characteristics of a Vendor vs. Subcontractor | Sponsored Research & Research Compliance (SPARC) | Office of Research | Rice University 

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FAQs, RADAR forum threads

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