What is a subaward versus a contract under federal grant rules? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.
Details / How it works
A subaward transfers Federal funds from a pass-through entity (a recipient or subrecipient) to a subrecipient to carry out part of a Federal program. A contract, by contrast, is a procurement instrument used by a recipient or subrecipient to acquire property or services under a Federal award. The two are mutually exclusive legal instruments with different compliance consequences.
Numbers & thresholds
| Feature | Subaward | Contract |
|---|---|---|
| Purpose | Carries out part of a Federal program | Procurement of property or services |
| Issued by | Pass-through entity | Recipient or subrecipient |
| Recipient type | Subrecipient | Contractor |
| Governing rule | Subaward definition, § 200.1 | Contract definition, § 200.1 |
Exceptions & edge cases
Federal awards do not include contracts a Federal agency uses to buy goods or services, nor contracts to operate government-owned, contractor-operated (GOCO) facilities. Subrecipient versus contractor determinations are made under § 200.331.
Sources
- [1]U.S. Government Publishing Office / Office of Management and Budget — 2 CFR 200.1 — Definitions for federal grants Uniform Guidance · as of 2026-08-28
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