UAH

Letter Subs

CONSULTANT/SUBCONTRACTS

Individuals providing services to UAH or acting at the request of UAH can be reimbursed in two ways: a Letter Subcontract or a Consultant Subcontract. The services/actions and payment/reimbursement conditions determine the reimbursement method. See Consulting Agreement Guidelines to ensure compliance.

THE PI DOES NOT HAVE THE AUTHORITY TO AUTHORIZE AN INDIVIDUAL TO START WORK ON ANY PROJECT. THE BOARD OF TRUSTEES GRANTS THIS AUTHORITY. THEREFORE, ANY UNAUTHORIZED COMMITMENT BETWEEN AND INDIVIDUAL AND THE PI, MAY BE DISAPPROVED FOR PAYMENT/PROCESSING BY THE OSP WITH THE APPROVAL OF THE VP FOR RESEARCH.

IF:

  • To an individual
  • One time only payment (Can include both a payment for honorarium and travel)

Stipend/honorarium, NTE $2000 – payment must be for a fixed price. Payment cannot be for hourly rates and/or not to exceed amount (NTE)

Travel, NTE $2000, will be reimbursed for actual expenses. The following statement must be included for all travel reimbursement, "TRAVEL MUST BE ON A U.S. FLAG CARRIER AIRLINE." Any exception to this requires agency's advance approval in writing.

  • Period of Performance must be for 90 days or less
  • No written report required

LETTER SUBCONTRACTS CANNOT BE USED TO BRING IN AN INDIVIDUAL(S) FOR PRE-HIRING INTERVIEWS. THIS MUST BE COORDINATED THROUGH HUMAN RESOURCES.

SEE LETTER SUBCONTRACT PROCEDURES: SECTION A

IF THE ABOVE DOES NOT APPLY TO YOUR SITUATION SEE SECTION B (Consultant Subcontract)

A: LETTER SUBCONTRACT

The Office of Sponsored Programs (OSP) assigns all Letter Subcontract numbers. A Subcontract number will be assigned upon review/approval of a faxed copy of the Letter. The Draft letter subcontract should be faxed to OSP at 824-6677. If the letter is in compliance with the above, a subcontract number will be issued. If necessary, OSP will suggest alternate wording to ensure compliance. The Letter Subcontract should state the following:

  • What the consultant will be reimbursed for, and UAH will provide, (lodging and/or meals, etc.). Everything UAH will provide and/or reimburse the individual MUST BE NOTED IN THE LETTER SUBCONTRACT.
  • The effective period of performance, not to exceed 90 days.
  • The event for which the individual is coming to UAH to participate.
  • The total amount not to exceed, to include all travel related expenses and/or the honorarium.
  • Letter Subcontract prepared on the Department/Center's Letterhead.

The following signatures are required on all Letter Subcontracts, prior to reimbursement/payment being made:

  • The Principal Investigator
  • The Consultant w/social security number and/or Visa Number
  • The Director of Sponsored Programs

Note: A Letter Subcontract without the Director of Sponsored Programs signature is not a valid contract and the University will not make payments against this document.

Changes to the Letter Subcontract:

The only person authorized to change/amend a Letter Subcontract once it is fully executed is the Director of Sponsored Programs. The amendment may be unilateral depending on the circumstances for amendment.

Payment:

Payment must be made by one of two ways: Miscellaneous Voucher or Issue Check Requisition. Regardless of the method of payment, the following documents must be attached:

  • Copy of fully executed Letter Subcontract
  • Original completed, signed and dated expense voucher. The consultant must sign the voucher.
  • Original receipts for all reimbursable, to include, but not limited too, lodging, meals, and travel. (UAH will not reimburse a consultant for any expenses not supported with an original receipt.)

Issue Check Requisition:

A copy of the fully executed Letter Subcontract, expense voucher, requisition and all supporting receipts must be faxed or delivered to OSP before OSP approves the requisition for payment.

If the documents are faxed, the department will forward the original expense voucher, original receipts (if applicable) and copy of the letter subcontract with the Requisition number annotated on the expense voucher to Purchasing.

OSP will approve the requisition once it has been verified to be in compliance with the Letter Subcontract and these procedures. Purchasing will issue a PO and Accounts Payable will issue a check.

Miscellaneous Voucher:

A copy of the fully executed Letter Subcontract, original expense voucher and original receipts (if applicable) will be forwarded to OSP for review/approval. OSP will forward the approved voucher to Accounts Payable for processing.

B. CONSULTANT SUBCONTRACT

PI must complete a Consultant/Subcontract Approval Request (CSAR) form. PI is responsible for obtaining the following signatures: Chairperson, Dean or Center Director as applicable. Center Director and Deans must obtain the signature of the VP for Research. OSP will obtain all other applicable signatures.

If Subcontract is to an Individual the following is required: complete mailing address. This must be to the individual residence. UAH will not issue a subcontract to an individual at their place of business. An email address if available, phone number, social security number and a resume. If to a company or University, complete mailing address, telephone and fax number of the point of contact.

The PI must prepare a statement of work (SOW). Note, if a fee is paid, all subcontracts will require a final written report unless the SOW requires a deliverable or the PI determines a verbal or email final report will do. The type and/or frequency of the reports required should be stated on the CSAR.

The completed CSAR with a SOW and resume for Key Personnel should be sent to OSP. OSP will prepare and issue the subcontract on behalf of the University.

It the subcontract period of performance is six months or more, funds will be encumbered. This will be done via requisition. The administrator/assistant will provide all required information for the requisition to you via memorandum.

If funds are encumbered, payments will be made by Memorandum Receiving Report (MR). This document will be requested by OSP upon receipt of an invoice from the subcontractor/consultant. Funds not encumbered are paid via issue check requisition upon receipt of invoice and support documentation and notification by OSP.

CHANGES TO THE SUBCONTRACT

Only OSP can make changes to a subcontract once it has been fully executed. Changes to all subcontracts must be coordinated with OSP. OSP may issue a unilateral amendment depending on the circumstance.

ADDITIONAL INFORMATION:

OSP IS REQUESTING THAT THE PI NOTIFY US AT A MINIMUM OF TWO WEEKS PRIOR TO THE START DATE OF ANY SUBCONTRACT THE UNIVERSITY MAY ISSUE.

SECURITY CLEARANCE:It is not the policy of UAH to issue security clearances to subcontractor/consultants.

CONSULTING AGREEMENT GUIDELINES

Agreements to secure the services of a consultant are established when the required services are for highly specialized advice or professional expertise that cannot be performed satisfactorily by existing UAH personnel during the course of their assigned responsibilities.

OUTSIDE CONSULTANTS ARE INDEPENDENT CONTRACTORS; NOT EMPLOYEES OR AGENTS OF THE UNIVERSITY.

By utilizing consultant agreements, UAH can complete necessary tasks that cannot be performed by current personnel without either UAH or the consultant acquiring any additional responsibility or liability beyond that established in the agreement. The basic distinction between employment and consulting relationships on which the Internal Revenue Service bases its enforcement of employer's withholding and reporting obligations is the degree to which a proposed service arrangement will allow control of the work effort, enter terms of exactly what will be accomplished, when, and how. Such control is considered to exist whether or not it is actually exercised. Having the right to exercise control over the services is sufficient to render the University subject to all responsibilities and liabilities applicable to employment relationships. Improper consulting arrangements that establish employment relationships under the guise of a contract impose on UAH full employer responsibilities under the Fair Labor Standards Act (FLSA), which can result in significant penalties, including criminal action, for failing to properly distinguish consultants from employees.

Note: the Director, OSP, must approve any exceptions to these procedures. Please contact OSP for additional information and or assistance with your subcontracting needs.