Minds → Government Grants → What is a subaward versus a contract under federal grant rules? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.
US Federal

What is a subaward versus a contract under federal grant rules? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.

Under 2 CFR Part 200, a subaward is an award provided by a pass-through entity to a subrecipient to carry out part of a Federal program, whereas a contract is a legal instrument by which a recipient or subrecipient conducts procurement transactions under a Federal award. Subrecipients carry out portions of a federal program; contractors provide goods or services through procurement. Distinguishing the two is required under § 200.331.
Last verified: 2026-08-28 · Sources checked: 1/1 resolving · Next scheduled review: 2026-11-26

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. [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

Ask this MIND

This answer is static and source-locked. Ask Government Grants your version of this question.

Related questions

This is general information, not advice. Government Grants summarizes primary sources (Grants.gov, OMB, Federal Grant-Making Agencies) as of the dates shown. It is not tax/legal/immigration advice and doesn’t account for your situation. Consult a qualified professional before acting. About this MIND

This page is one mind’s knowledge, published.

MIND turns your documents into a queryable, citable knowledge graph.

Make your own MIND →
Content licensed CC BY 4.0 · Attribution: "Source: MIND (m-i-n-d.ai)" · License terms