Subrecipients may have some or all of the following characteristics:
- Measure performance against the objectives of the program
- Have authority for administrative and programmatic decisions
- Provide on-going service for the life of the program
- Carry out program (vs. providing service for a program)
- Responsible for applicable program compliance requirements
On a federally funded sponsored project, subrecipient funds are passed through from the recipient to a subrecipient by a subcontract. This agreement will flow down the various regulatory and compliance requirements.
- Provide service as part of normal business operations
- Provide a similar service to many different purchasers
- Operate in a competitive environment (compete with others who provide similar services)
- Provide a service outside program compliance requirements
A subrecipient serves as a co-investigator and is responsible for the end results of the research effort equally with the principal investigator where federal funds are being passed through to another entity.
A vendor provides ancillary goods or services that the principal investigator needs to conduct the research effort. A vendor is not responsible for research results.