Page History

...

The subaward is the legally-binding agreement between a pass-through entity (PTE) and another non-Federal entity (NFE). The purpose of this agreement is to establish a Federal assistance relationship between the PTE and its NFE partner associated with carrying out either all, or a portion, of a Federal financial assistance award. There are no restrictions on what the PTE calls this agreement; rather, it is principle purpose of the relationship established in the agreement that defines it at the Federal level . However, at the Federal level, the agreement will be defined, and regulated, by it's principle purpose (cf. 'Subrecipient vs. Contractor determination') . Therefore, PTEs must exercise reasonable judgment in making the correct determination of the nature of the agreement, even when not all subaward characteristics in §200.331(a) are present. 

...