Updated October 31, 2024
External entities may act as contractors, consultants or recipients of subawards.
- Contractors: Entities providing goods or services to MIT. (Referred to as suppliers by VPF, and previously referred to as vendors by Uniform Guidance.)
- Consultants: An individual performing services for compensation within a well-defined set of criteria. (Referred to as independent contractors by VPF.)
- Subrecipients: Have very specific criteria and responsibilities that flow down from the prime award, and should include careful consideration of compliance and financial responsibilities.
See Uniform Guidance 200.331 Subrecipient and contractor determinations for additional criteria.
Budgeting for Contractors
Budget categories will vary depending upon the services or goods provided.
- Show the contractor's total projected cost on the project.
- In the proposal, may include a quote from the contractor.
- Contractors incur indirect costs on the full amount.
Budgeting for Consultants
Budget categories should:
- List each consultant; their specialty or service to the project; and their daily, weekly, or monthly rate of reimbursement. They may be reimbursed for services as well as travel and other miscellaneous expenses
- Show the consultant's total projected cost on the project.
- In the proposal, include a letter of collaboration and the consultant's curriculum vitae.
- Should not be categorized as Personnel but as Consultant or in the Other Direct costs category.
- Consultants incur indirect costs on the full amount.
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Budgeting for Subawards
The budget category will be Subaward and include subrecipient’s total costs (direct and indirect) as the MIT direct costs. Subawards must have negotiated indirect cost rate agreement or use the de minimis rate.
MIT indirect costs on the Subaward depend upon the rate type:
- Modified Total Direct Cost (MTDC) rate will apply indirect costs on the first $25,000.
- Total Direct Cost (TDC) rate will apply indirect costs on the total subaward amount.
There are additional requirements for subawards at proposal, including a signed letter of commitment [PDF].