A subaward is a formal written agreement made between Stanford University and a Subrecipient to perform a portion of the Statement of Work under a Stanford sponsored project. A subaward must include a clearly defined, intellectually significant Statement of Work (SOW) to be performed by the subrecipient. The subrecipient's SOW is performed by its personnel, using its own facilities and resources. The subrecipient takes full responsibility for adhering to the terms and conditions of the subaward including those flowed down from Stanford's sponsor, and assumes creative and intellectual responsibility and leadership as well as financial management for performing and fulfilling the subrecipient's SOW within the subrecipient's approved budget. The subrecipient's responsibility under a subaward is also called "programmatic decision-making" under federal funding terminology. A subaward SOW may include fabrication of specialized equipment to be used for the Stanford sponsored research project as a project-related asset or as a deliverable to the sponsor.
Subawards differ from procurement contracts used to acquire goods or services from vendors. Additional guidance is found in this policy.