Consultants and Subcontracting

 

Consultants

Definition: An individual or firm that provides professional advice or services on the basis of a written agreement for a fee. These individuals are not normally employees of the organization receiving the advice or services.

Consultant costs consist of the consultant’s normal daily rate (times number of days), plus any travel and subsistence costs.

Compensation should be based on the consultant's rate history for comparable services. Refer to the funding agency guidelines for caps on consultant rates.

Consultants do not receive fringe benefits and are not provided with supplies, administrative support or other standard business items.

Subcontracting

Subcontracting is the transfer of a significant portion of work on a sponsored agreement to a third party. It requires agency approval and must be identified in the proposal.

The subcontract is between the University and the subcontractor entity. The subcontractor must meet all grant requirements that the funding agency imposes upon the prime grantee.

The subcontractor should provide a statement of work, budget and documentation of its willingness to participate in the project (usually via a letter from the subcontractor’s authorized representative).

N.C. A&T’s appropriate F&A (Indirect Cost) rate is calculated on the first $25,000 of each subcontractor’s total cost.