California State University, Fresno
Contract Fundamentals
at Fresno State
Doug Carey, Grants Administrator
Office of Research and Sponsored Programs
California State University, Fresno
Office of Research and Sponsored Programs
Contract Fundamentals
1) Is That A Contract or A What?
2) Expediting the Process
3) Who’s Who in Contract Lingo
4) What Are We Looking For?
5) Other Parts of Wise Subcontracts
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1) Is That A Contract or A What?
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Contract
Grant
Both are contracts, i.e. written
agreements
So what’s the difference?
Come to us! We will walk you through all
of this….
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What is an “agreement”?
 Synonym for a contract
 When two or more entities agree to
something, the contract is where they
write all of that down.
 Then they sign it. That act makes the
contract binding.
 At Fresno State, only AORs (Authorized
Organizational Representatives) can
sign.
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A Contract:
A Quick Definition
 A formal document detailing reciprocal
obligations between parties; Can include
nearly anything agreed to between
parties
 Normally details compensation issues
and scope of work
 Legally binding in a court of law
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So … what’s the difference?
 Grant
o Project conceived by Principal Investigator
o Agency supports or assists
o Principal Investigator defines, details, and
retains scientific freedom
o Agency maintains “cognizance”
o Unilateral
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So … what’s the difference?
 Contract
 Project conceived by agency
 Agency procures services or goods
 Agency exercises direction or
control
 Agency closely monitors
 Bilateral
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So … what are the results?
 Grant
 Award documents have general
conditions
 Re-budgeting can be flexible
 Publication rights, patent rights, and
so on favor Principal Investigator
 Annual reports
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So … what’s the difference?
 Contract
 Award documents are longer and
more detailed
 Re-budgeting is less flexible
 Agency may ask for prior review of
publications
 Reports may be monthly and more
detailed
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2) Expediting the Process
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Include your grant administrator early
in the process.
Even if it’s “just” a contract, there’s
still a scope of work being discussed.
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What we need
Project Information Form (PIF)
 Scope of Work/project narrative
 Line-item budget
 Indirect cost policy
 Conflict of Interest form (when
necessary)
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Before beginning work…
Working with your grant administrator
early can prevent delays at postaward stage.
 Allow time for contract review
process.
 A smooth set up streamlines your
post-award phase.
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Timetable & Review Process
 Multiple reviews and approvals are needed.
Legal Review is critical
Why so thorough?
o If we get it right, we streamline your postaward phase.
o If we get it right, we reduce your
administrative burden.
o To get it right, we depend on your
cooperation.
 Start early! Come to us early!
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3) Who’s Who In Contract Lingo
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Come to us. We translate the
‘contract-ese’
o
o
o
o
o
o
o
o
Vendor
Consultant
Contractor; Subcontractor
Prime/Primary Contractor
Subrecipient
Partner
Collaborator
Consortium
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A Quick Example:
The Consultant
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Contract with an entity or business that
results in the professional services of an
individual
A business relationship; Not an employee
relationship
Cannot be a Fresno State employee in a
Fresno State Proposal or Contract
Common Question: Is A Consultant A
Contractor? Yes!
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Subcontractor
 A.K.A., Subrecipient or Subawardee
 Any organization or person with whom you
have a written agreement (a contract)
 Generally synonymous with Contractor, but
normally subordinate to a prime contractor
 Is your external evaluator a subcontractor?
o
YES
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Prime/Primary Contractor
 A Contractor responsible for the work of
additional subcontractors functioning
from one primary client or source of
revenue
 When Fresno State is a prime
contractor, it is held responsible for
performance (or non-performance)
of its subcontractors.
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4) What Are We Looking For?
 Lots and lots…..
 Is the contractor name "California State University,
Fresno Foundation“?
 Billing and Payment Terms
 Timely Reimbursement
 Source documents attached to invoices
 Compliant with CSU travel regulations
 Termination clauses
 Insurance requirements
– Come to us! We’ll walk you through it
all….
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Protecting Faculty Rights
 Do patents and copyrights generally
remain the property of the principal
investigator/project director?
 Does the contract limit the faculty
member’s rights to publish?
 Does the contract contain a
“confidentiality” clause that will undermine
the right to publish?
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Cost Sharing:
What Is the Big Deal?
Need: Explain sources of cost
share.
Why? Cost share monies are also
subject to audit.
 This is true for all contracts
(including grants).
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Cost Sharing:
What Is the Big Deal?
Why is cost share a big deal for all
contracts and grants?
 Sponsors look at cost share to see if
institution is on board.
 Sponsors look at cost share to see if
internal resources are being leveraged.
 Sponsors can ask for proportional return
of their funds if cost share is not met.
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5) Other Parts of Wise Subcontracts
 Statement of Work (generally,
“Attachment A”)
 Line Item Budget (generally,
“Attachment B”)
 Source of the funding information
 Key Personnel By Name
…but do not forget to tie name to a
position
o Post award bills by position
o
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Statement of Work
(a.k.a., Scope of Work)
 A good statement of work will include
goals, objectives, time frame, and
deliverables.
 It should facilitate and make contract
management an easy process.
 It should streamline your project reports.
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Attachment A
Work Statement
The purpose of the Work is to compile existing secondary data from numerous sources
and provide an analytical report on access, disparities in health, and health workforce
issues in the twelve county region of the Central San Joaquin Valley in California. The
deliverables associated with the Work comprise:

An analytical report on access, health disparities and health care
workforce issues in Kern, Tulare, Fresno, Madera, Kings, Merced,
Stanislaus, San Joaquin, Mono, Inyo, Tuolumne and Mariposa Counties.
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A comprehensive data and policy report for public dissemination on the
San Joaquin Valley community on access, disparities and health care
workforce issues in the eight counties of Kern, Tulare, Fresno, Madera,
Kings, Merced, Stanislaus and San Joaquin.
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A comprehensive dissemination of the report to community providers,
advocates, media, community groups, policy makers and researchers in
California via briefings, media and twelve (12) community convenings.
The Subcontractor will complete the Work incrementally in conformance to the
following tasks and due dates:
Task
Number
1
Due By
February 28
2
March 31
3
April 30
4
May 31
5
6
June 30
July 31
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August 31
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9
10
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12
September 30
October 30
November 30
December 31
January 31
Task Description
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Meet with data contacts
Establish data sources for all variables
Review preliminary data collection
Refine data sources
Create outline for analytic report
Design data presentation format for all variables in analytic
report
Establish specific plans for graphic and GIS representation
Collate all data and draft analytic report
Create outline for Hurting in the Heartland Update
Revise draft and prepare final analytic report
Draft Hurting in the Heartland update
Schedule all community forums for Fall 2003 presentations
Final draft Hurting in the Heartland update
Publicize all community forums for Fall 2003 presentations
Hold 4 community forums
Hold 4 community forums
Hold 4 community forums
Collate feedback and information from community forums
Write and submit final report
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Contact us
Doug Carey, Grants Administrator
Office of Research and Sponsored Programs
dcarey@csufresno.edu
278-0964
Web: http:www.csufresno.edu/grants
Twitter: fresnostateORSP
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