Non-Federal Subaward Agreement Template: A Comprehensive Guide

A Non-Federal Subaward Agreement refers to a contract between a recipient of federal funds and a subrecipient who receives a portion of those funds. This type of agreement is used when a primary recipient, typically a higher education institution or non-profit organization, requires assistance in carrying out a portion of a project or program that is funded by a federal grant. In this article, we will discuss the essential components of a Non-Federal Subaward Agreement Template and steps that you can follow to create one.

Essential Components of a Non-Federal Subaward Agreement Template

1. Scope of Work:

This section outlines the work that the subrecipient will perform to achieve the objectives of the project or program. It should describe the specific tasks, deliverables, and timelines for completing the work. The scope of work should be clear, concise, and aligned with the goals of the project or program.

2. Payment Terms:

The payment terms section specifies the amount of funding that the subrecipient will receive from the primary recipient, the payment schedule, and the terms and conditions for making payments. This section may also include other financial obligations, such as cost-sharing or matching funds, and the budgetary restrictions that the subrecipient must adhere to.

3. Intellectual Property Rights:

This section covers the ownership and use of any intellectual property that is created during the subaward period. It should specify the rights of the subrecipient and the primary recipient to use, license, and distribute any intellectual property that is developed as a part of the project or program.

4. Confidentiality and Data Sharing:

This section outlines the confidentiality requirements and data sharing restrictions for the subrecipient. It should specify the types of data that the subrecipient will have access to, the methods for protecting confidential information, and the circumstances under which the subrecipient may share the data with third parties.

5. Reporting Requirements:

This section describes the reporting obligations of the subrecipient, including the frequency and format of the reports that they must provide to the primary recipient. It should outline the specific information that must be included in the reports, such as progress updates and financial statements.

Steps to Follow when Creating a Non-Federal Subaward Agreement

1. Evaluate the Need for a Subaward:

Before creating a Non-Federal Subaward Agreement, the primary recipient should first evaluate whether a subaward is necessary to accomplish the objectives of the project or program. They should consider the expertise, resources, and capacity of their organization, as well as the specific requirements of the funding agency.

2. Identify Potential Subrecipients:

Once the primary recipient has determined that a subaward is necessary, they should identify potential subrecipients who have the knowledge and expertise to carry out the tasks outlined in the scope of work. They should also consider the subrecipient`s financial capacity and reputation.

3. Develop the Agreement:

Using the essential components outlined above, develop the Non-Federal Subaward Agreement Template. This agreement should be tailored to the specific needs of the project or program and should be reviewed by legal counsel before finalizing.

4. Monitor Performance of the Subrecipient:

Once the agreement is in place, the primary recipient should monitor the performance of the subrecipient to ensure that they are fulfilling their obligations under the agreement. They should also maintain open communication with the subrecipient and address any issues that arise promptly.


A Non-Federal Subaward Agreement is an important tool for organizations that require additional resources and expertise to carry out a project or program that is funded by a federal grant. By following the essential components and steps outlined above, you can create a comprehensive agreement that protects the interests of both the primary recipient and subrecipient.