Subgranting or contracting for projects by a grantee under a grant awarded under a statute or regulation explicitly intending that the primary responsibility of each grantee shall be to select projects for support and to award and administer grants, contracts or other agreements for those projects. The transfer of activities and funds to a collaborating or cooperating organization in a grant awarded under a statute or regulation explicitly intending such collaboration or cooperation. The transfer of activities and funds to a college, university, hospital, or government entity from a closely affiliated but separately incorporated organization having for a primary purpose the receipt and administration of gifts, grants, and contracts. An example is the transfer of funds to a State university from its affiliated research foundation. The provision of financial assistance to students under a training grant.
Procurements are often the means by which the grantee transfers programmatic work to a third party.
A granting agency may limit the kinds of third parties eligible to perform the work or receive the financial assistance. However, it may not itself choose a party and directly or indirectly require the grantee to transfer the work or award the assistance to that party. The choice of a specific party must be the grantee's.