In the course of sponsored activity it is often necessary to involve parties outside the University to assist in the technical and programmatic aspects of the project. Normally the need for outside assistance is known during proposal preparation and included in the proposal to the sponsor. The method for formalizing the arrangement is through a subcontract or personal services contract. A subcontractor is an individual or other entity outside the University who will perform a portion of the actual scope of work. This relationship implies that the subcontractor is an integral part of the project and accepts responsibility for a portion of the project effort.
Subcontractors are usually in the original proposal as collaborating institutions.
A consultant is an individual or other entity outside the University, possessing specialized expertise, engaged to give professional advise, make recommendations or address a specific problem. They have little or no responsibility for overall project effort and are usually retained on a short-term basis. Both of these relationships require a formal written agreement before work may begin. The agreement specifies the required work, performance period, allowable costs, billing and reporting requirements. It may also include provisions from the original sponsored agreement which also apply to a subrecipient of the funds.