The subcontractor should also provide its Federal Employer Identification Number and required certifications. When the purpose of the project is to support collaboration with a particular Principal Investigator at another institution, a proposal from a sole source should be considered. The PI must submit a statement disclosing any direct or indirect financial interest in the subcontractor's organization. The sub-proposal is then incorporated into Penn's primary proposal. A list of the subcontractor's total costs should be included in the Subcontract or Other Direct Costs categories of Penn's budget.
Many sponsors require the subcontractor's budget be appended to the proposal.
Research Services' review of the primary proposal will include an assessment of the sub-proposal. In addition to evaluating the subcontractor's budget and legal standing, Research Services will consider such matters as the subcontractor's integrity, record of past performance, financial and technical resources, and avoidance of conflict of interest. If the need for the subcontractor is identified after the sponsored project is awarded, sponsor approval is often required before initiation of the subcontract. The Subcontract Usually, subcontractors must honor all terms and conditions the sponsor imposes on the University. The purpose of the subcontract document is to establish those requirements contractually.