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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 . However, at the Federal level, the agreement will be defined, and regulated, by its 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.
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Frequently Asked Questions
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How many times can a Federal financial assistance award be subawarded?
2 CFR 200 does not place a limit on the number of times this may happen. So, barring any applicable Federal statute limitations, or Federal awarding agency discretion, the Federal award may be subawarded as many times as each pass-through entity determines is necessary, as long as each subaward continues to meet the requirements in 200.331. (cf. Uniform Guidance FAQ .331-2 here).
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