Subrecipient vs. Supplier Wizard
Subrecipients and suppliers (also called “contractors” or “vendors”) are budgeted and managed differently under UC Berkeley policies and federal regulations. When involving a collaborator from an outside organization in you proposal, failing to categorize that outside organization properly can cause processing delays, unexpected costs, and misunderstandings between UC Berkeley and the outside organization. This is because:
- UC Berkeley charges indirect costs differently against subrecipients vs. suppliers.
- Suppliers will refuse to accept a subaward agreement, because they cannot comply with terms and conditions intended for subrecipients.
- Subrecipients will refuse to accept a supplier agreement, because such agreements do not give them rights (such as to intellectual property) to which they are entitled under a subaward.
The distinction between a subrecipient and a supplier is not always clear cut. An outside organization may act as a supplier under one project, but a subrecipient under another. This is particularly true of for-profit organizations that most often perform as suppliers but can act as subrecipients under certain conditions. The determining factor lies in the outside organization’s Statement of Work for any given project.
This Subrecipient vs. Supplier Wizard will help you evaluate an outside organization’s Statement of Work. By answering ten questions, you can get an indication of how to categorize the outside organization in your proposal. It will also help tell you which UC Berkeley office should be involved in managing the transaction with the outside organization, if the sponsor funds your proposal. Use the Subrecipient vs. Supplier Wizard or see the list of all the questions below.
The final determination about whether an outside organization should be treated as a subrecipient or a supplier will be made by the Sponsored Projects Office (SPO), after you submit your Subaward Request, and will be based on the outside organization’s Statement of Work. If SPO concludes that the outside organization’s Statement of Work is that of a supplier, SPO will consult with Supply Chain Management before making a final determination, and may also consult the UC Berkeley principal investigator (PI) during that process.
For a more thorough overview how to distinguish a Subrecipient from a supplier consult Supply Chain Management’s Subrecipient vs. Supplier Determination Sheet.
Subrecipient vs. Supplier Wizard Questions
Question 1: Will you be sending funds out to another UC campus or an outside organization?
If no: See the “Who Does What? Guide” on the Business Contracts and Brand Protection (BCBP) website
If yes: Go to Question 2.
Question 2: Is the source of these outgoing funds a grant or a contract issued to UC Berkeley by a government, non-profit, or for-profit/industry sponsor?
If no: Contact Supply Chain Management (SCM) to transfer unrestricted gift funds to support collaborative research. Contact the Controller’s Office for Intercampus Financial Transactions.
If yes: Go to Question 3.
Question 3: Will the funds provided to the outside organization be used to carry out a program for a public purpose, as opposed to providing goods and/or services that will only benefit UC Berkeley?
If no: Contact Supply Chain Management (SCM).
If yes: Go to Question 4.
Question 4: Will there be an employee of the outside organization who will serve as PI/Co-PI responsible for programmatic decision making? (Note: Programmatic decision-making is defined as working with the Berkeley PI to make choices or decisions on how to best achieve one or more of Berkeley’s project goals and/or objectives. It does not pertain to carrying out a specific task or activity in accordance with the specifications, directions and/or instructions provided by the Berkeley PI.)
If no: Contact Supply Chain Management (SCM).
If yes: Go to Question 5.
Question 5: Has the outside organization signed the certification on one of UC Berkeley’s Subrecipient Commitment Forms or indicated in some other way that they agree to be treated as a subrecipient?
If no: Contact Supply Chain Management (SCM).
If yes: Go to Question 6.
Question 6: Will the outside organization’s key personnel be listed as co-authors on any Berkeley publications that may result from the outside organization’s scope of work?
If no: Contact Supply Chain Management (SCM).
If yes: Go to Question 7.
Question 7: Will the outside organization have the right to retain right, title and interest, including all copyrights and other intellectual property rights, in and to all materials, inventions, works of authorship, software, information and data conceived or developed by the outside organization’s personnel in the performance of the project?
If no: The outside organization is most likely a supplier; budget accordingly and work with Supply Chain Management (SCM) to process these funds.
If yes: The outside organization most likely a subrecipient; budget accordingly and go to Question 8.
Question 8: If applicable, will the use of human subjects for research by the outside organization require IRB review?
If no: Contact Supply Chain Management (SCM).
If yes or “NA”: Go to Question 9.
Question 9: If applicable, will the outside organization use live vertebrate animals for more than biological testing?
If no: Contact Supply Chain Management (SCM).
If yes or “NA”: Go to Question 10.
Question 10: Are UC Berkeley’s funds coming from a for-profit or industry sponsor?
If no: Submit a complete Phoebe Subaward Request to the Sponsored Projects Office (SPO).
If yes: Submit a complete Phoebe Subaward Request to the Industry Alliances Office (IAO).
Note that with the Phoebe Subaward Request system, routing to SPO or IAO is managed automatically in Phoebe.