Setting Up and Modifying Outgoing Subawards
Once an award or modification has been fully executed by DCG and is active in USC’s systems, the PI/Department Administrators can initiate the request for DCG to issue a new subaward or subaward modification, as appropriate. Please ensuring that all sponsor approvals required for issuing the subaward or subaward modification are secured before making the request to DCG. Should prior approval be needed please consult with your DCG Officer.
Making this request promptly is also essential to minimize any delay in the subawardee’s ability to commence their work effectively.
How Do I Request a New Subaward?
Once a fully executed prime award is established in USC’s systems, the departmental administrator or Principal Investigator can request a new subaward by initiating a Supplier Contract (“New” or in the case of Modifications, “Mods”) in Workday (“SCON”). Please reference the Workday Quick Guide for assistance with this process. Workday can be accessed here .
The Department of Contracts and Grants (DCG) uses the information provided in the “Contract Overview” section of Workday to guide and issue new subawards and modifications.
DCG’s review in Workday consists only of the information in the “Contract Overview” and “Attachments” sections. Once the SCON is complete in USC Workday and all school required approvals are in place, it will route to a DCG Subaward Officer who will ensure that the subaward is put in place and assist you with any questions you might have regarding the terms of your subaward agreement.
Please ensure that the below information is included in the “Contract Overview” section:
New Subawards
Please include the below information in the “Contract Overview” section in Workday:
- USC Principal Investigator
- USC Sponsor
- Prime Sponsor Award Number (Not the AWD# or GR#)
- Subcontractor Principal Investigator
- Title of the Subcontract
- Will there be Animal or Human Subjects at the Subaward site?
- Subcontractor Contact Information
- Description of Action (Ex: “We are funding Year 1 of 5. Year 1 funding will be $30,000, and total anticipated funding is $150,000. The Year 1 period of performance is 7/1/2021-6/30/2022.”)
Please include the following attachments in Workday:
- Subrecipient specific scope of work
- Subrecipient budget and budget justification (Cost Reimbursable Subs) or a payment schedule (Fixed-Price Subs)
Modifications
Please include the below information in the “Contract Overview” section in Workday:
- Subcontract Number (The number assigned on the subcontract document (original SCON#).
- USC Principal Investigator
- USC Sponsor
- Prime Sponsor Award Number (Not the AWD# or GR#)
- Will there be Animal or Human Subjects?
- Description of Action – (Ex: “We are adding $10,000 and extending the end date to 8/31/2021. We are also adding the attached supplemental SOW and budget.”)
Please include the following attachments in Workday as applicable to the modification:
- Modified Scope of Work
- Modified Budget & Budget Justification
- Modified Payment Schedule
Administrative/Internal Corrections
Please include the below information in the “Contract Overview” section:
What Happens After I Submit a New or Mod SCON in the Workday System?
The SCON will first route through school and Workday approvals and then will route to DCG.
The DCG Subaward Officer assigned to your department will retrieve the SCON and assign it to themselves in the Workday system.
The DCG Subaward Officer will review the information in the “Contracts Overview” and the “Attachments” section of the SCON to determine that we have the appropriate sponsor approvals and complete information to draft and issue the new Subaward or modification to the subrecipient.
If information is missing, the DCG Subaward Officer will reach out to the initiator and requests corrections and/or additional information. This will need to be completed prior to DCG issuance of the Subaward.
DCG will collect the following documentation from the Subrecipient for new Subawards:
- A new Subaward draft (for their review).
- A Subrecipient Certification Form (for Subawardees not in the FDP Expanded Clearinghouse) A current F&A Rate Agreement (unless noted on the Certification Form that the de minimis or lower is being applied).
- A current Single Audit Report or a completed Audit Certification and Financial Analysis Questionnaire.
- Applicable Compliance Approvals (e.g., IRB, IACUC).
- Other Applicable Documentations to Comply with USC Prime Award Requirements.
- DCG will perform a subrecipient risk analysis based on the subrecipient’s responses in the Subrecipient Certification Form, and associated attachments. If a subrecipient is determined to be medium or high risk, departmental notification will be required to proceed with the subaward. DCG will also suggest special subaward terms to help mitigate potential risk for the Department/PI’s consideration.
The DCG Subaward Officer will coordinate with the Subrecipient and the PI/Dept/School to negotiate and finalize the terms of the Subaward agreement.
Upon receiving the partially executed subaward agreement, DCG will sign the agreement, return a fully executed copy to the subrecipient, and approve the SCON in Workday.
Modifications
When Should I Modify an Existing Subaward?
You should modify an existing Subaward when there are:
- Changes to Statement of Work.
- Changes to the Awarded Budget (e.g. an increase or reduction).
- Budget reallocations that require a formal modification to the subaward.
- Modification of any terms and conditions, including the addition of special terms and conditions, reporting requirements, etc.
- Changes to the Period of Performance, including no cost time extensions.
- Early termination (advance written notice of termination is typically required).
How Do I Modify an Existing Subaward?
To initiate a subaward modification, the PI or departmental administrator must submit an modification modification to their Supplier Contract (SCON) request.
Log into Workday and initiate an modification to your existing SCON. Please note: if carryforward is restricted then you will need to issue a new SCON for each year in order to issue the next year of funding..
Complete the “Contracts Overview” and the “Attachments” section of the SCON. DCG will use information in those sections to determine that we have the appropriate sponsor approvals and complete information to draft and issue the modification to the subrecipient.
If information is missing, the DCG Subaward Officer will reach out to the initiator and requests corrections and/or additional information. This will need to be completed prior to DCG issuance of the Modification.
Information to Include in the SCON
Please ensure that the below information is included in the “Contract Overview” section or the SCON:
- Subcontract Number (The number assigned on the subcontract document).
- USC Principal Investigator
- USC Sponsor
- Prime Sponsor Award Number (Not the AWD# or GR#)
- Will there be Animal or Human Subjects at the Subaward site.?
- Description of Action – (Ex: “We are adding $10,000 and extending the end date to 8/31/2021. We are also adding the attached supplemental SOW and budget.”)
If there are changes to the Statement of Work, budget and/or budget justification, revised versions of the affected documents should be attached.
How Do I Add Subcontractors That Were Not Part of USC's Original Proposal?
If a Principal Investigator would like change subcontractors or add subcontractors that were not originally anticipated as part of a proposal, USC will generally need to obtain prior approval from its sponsor. To initiate the request, the departmental administrator or Principal Investigator should contact the DCG Officer assigned to their unit and provide:
- Statement of Work
- Budget & Budget Justification
- Subrecipient Letter of Commitment with all required certifications or Subaward Certification Form
The DCG Officer will use the above documentation to seek prior approval to issue the subaward from the sponsor. Upon receipt of the sponsor’s approval, you can proceed to submit the Supplier Contract in Workday. Upon receiving the Supplier Contract in Workday, the assigned DCG Subaward Officer will initiate their review and agreement with the subrecipient, consistent with University policies and procedures.
What compliance checks does DCG perform prior to issuing a Subcontract?
Before executing a subcontract agreement, DCG performs several key checks to ensure compliance and proper stewardship of sponsor funds. This thorough review process helps ensure that all compliance requirements are met and that the subrecipient will responsibly manage the sponsor funding:
Allowability
Verifies that issuing the subcontract is allowable under the terms of the prime agreement.
Consistency
Confirms that the proposed scope of work for the subrecipient aligns with the definition of a subcontract as outlined in 2CFR200.331.
Compliance
Reviews the Subaward Certification Form or Federal Demonstration Partnership Expanded Clearinghouse Profile, Subrecipient’s Single Audit or Audit Certification and Financial Status Questionnaire, Federally Negotiated Rate Agreement (if available), Fair and Reasonable Cost Analysis form (as applicable), IRB / IACUC approvals and any other documents required to meets all Prime sponsor requirements. This includes annual checks for any updates to these documents to address potential issues.
Risk Assessment
Conducts a risk assessment of the subrecipient and advises the Principal Investigator or School on any additional terms or oversight needed to manage potential risks effectively.