Sponsored Projects

Subrecipient, Subcontract, Consultant, or Vendor

How to Tell Them Apart at WIU

When preparing grant proposals or managing externally funded projects, it’s essential to correctly identify the type of relationship WIU has with external collaborators or service providers. Each type—subrecipient, subcontractor, consultant, or vendor—comes with different expectations, regulations, and documentation requirements. Misclassification can lead to compliance issues and audit findings.

Below is a breakdown of these roles to help Principal Investigators and project staff make informed decisions during proposal development and project implementation.

Subrecipient

A subrecipient is a third-party organization that collaborates with WIU to carry out a portion of the scope of work of a sponsored project. This relationship reflects a true partnership and carries programmatic responsibility.

Indicators of a subrecipient relationship:

  • Performs substantive, programmatic work that is integral to the project.
  • Has its own Principal Investigator (often referred to as a Co-Investigator).
  • Participates in designing and/or conducting the research or program.
  • Exercises independent judgment and discretion in carrying out work.
  • May contribute cost share or matching funds.
  • May create or co-author publications.
  • May develop patentable or copyrightable products.
  • Requires IRB approval if conducting research with human subjects.

At WIU:

Subrecipient organizations must provide:

  • A letter of commitment
  • Scope of work
  • Budget and budget justification with detailed costs
  • WIU Subrecipient Commitment Form
  • Documentation of their federally negotiated F&A rate (or de minimis if applicable)

All subawards are reviewed, negotiated, and issued by the Office of Sponsored Projects (OSP), which ensures compliance with federal flow-down requirements from the prime award. Subaward documentation must be received prior to proposal submission. Incomplete or late documents risk exclusion from the final application.

Contractor / Vendor

A vendor (or contractor) provides routine goods or services that support the research or program but does not contribute to the intellectual direction of the project.

Indicators of a vendor relationship:

  • Provides standardized services or goods.
  • Operates in a competitive marketplace.
  • Has no programmatic decision-making responsibilities.
  • Is not involved in project design or analysis.
  • Does not expect co-authorship or intellectual property rights.
  • Commits to deliverables (goods or services) in exchange for payment.
  • May be an individual or organization.

At WIU:
Vendor services are typically processed through WIU’s Procurement Office. If costs exceed $5,000, a competitive bid process or sole source justification is required. The Principal Investigator is responsible for ensuring reasonableness of price and vendor selection in accordance with university policy.

Consultant

A consultant is an individual (not a company) hired for their expertise or professional advice in a specific area, usually short-term or intermittent.

Indicators of a consultant relationship:

  • Provides expert opinion or guidance.
  • Is not responsible for project outcomes or deliverables beyond the contracted task.
  • Is not an employee of WIU.
  • Has no role in directing project activities or decisions.
  • May provide a report, opinion, or recommendations.

At WIU:
Consultants may require a signed agreement detailing scope, rate, and deliverables. Federal grants require documentation that the consultant’s rate is reasonable and that their services are essential to the project. All consultant engagements must follow WIU’s consulting and procurement policies.

Why It Matters

Proper classification:

  • Ensures compliance with federal and state regulations.
  • Affects how the agreement is written, approved, and monitored.
  • Impacts indirect cost recovery and audit risk.
  • Helps avoid delays in project execution.

OSP is available to assist in determining the correct classification before proposal submission or agreement execution. If you're unsure whether your collaborator is a subrecipient, vendor, or consultant, contact sponsoredprojects@wiu.edu.