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A "subrecipient" is defined in 2 CFR § 200.93 as as a non-Federal entity that receives a subaward (as defined in 2 CFR § 200.92) from a pass-thru-entity to carry out part of a Federal program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency.
A "contractor" is defined in 2 CFR § 200.23 as as an entity that receives a contract, which as defined in 2 CFR § 200.22 is is a legal instrument by which a non-Federal entity purchases property, goods, or services needed to carry out the project or program under a Federal award. This term does not include a legal instrument, even if the non-Federal entity considers it a contract, when the substance of the transaction meets the definition of a Federal award or subaward (as defined in 2 CFR § 200.92).
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2 CFR 200.330 Subrecipient and contractor determinations
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Federal regulations differ between subrecipients and contractors. One of the biggest reasonings is that subrecipients are required to comply with applicable Federal compliance requirements (these get passed down from the pass-through entity to the subrecipient), while contractors are not subject to the same compliance requirements of the Federal program. It is the responsibility of the pass-through entity to identify the subaward to the subrecipient and include the information listed in 2 CFR § 200.331(a)(1-6) in in the agreement form between the pass-thru-entity and the subrecipient.
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No. Many non-Federal entities, particularly State agencies, call all of their legal instruments "contracts". 2 CFR 200.330 is clear, "A A non-Federal entity may concurrently receive Federal awards as a recipient, subrecipient, and a contractor, depending on the substance of its agreement with the Federal awarding agency and pass-through entities. Therefore, a pass-through entity must make a case-by-case determination whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor." Pass-through entities need to reflect upon the nature of the case-by-case relationship of the agreement in order to determine if the non-Federal entity is a subrecipient or a contractor.
What guidance can you provide in order to help distinguish between a subrecipient or contractor?
2 CFR § 200.330(a) provides provides characteristics which generally support the classification of a non-Federal entity as a subrecipient. Characteristics generally supportive of a contractor are listed in 2 CFR 200.330(b). Both sets of characteristics are listed in the above section.
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Am I required to complete a Risk Assessment on both subrecipients and contractors before issuing the award?
2 CFR § 200.331(b) requires requires all pass-through entities to evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for the purposes of determining the appropriate monitoring needed to ensure that Federal funds are used properly. Pass-through entities are not required to complete a risk assessment on contractors.
What additional requirements does the pass-through entity have in regards to its subrecipients?
2 CFR § 200.331 lists lists the various requirements that pass-thru entities have in regards to subrecipients.
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References
2 CFR § 200.92 -932 CFR Subaward.
§ 200.330 -331
