Office of Criminal Justice Grants
Third-Party Agreements Under Federal Awards
Introduction
Using federal grant funds for contractual services with a third-party can be a complex ordeal.
There are two types of contractual relationships recognized under federal awards - contractors (which include consultants as a subtype) and subrecipients. Generically speaking, if the third-party vendor the recipient is contracting with will be performing activities for a "public purpose" (i.e. benefit to others) it is most likely a subrecipient relationship. If the third-party vendor will be performing activities that primarily benefit the award recipient, it is most likely a contractor relationship. The compliance requirements associated with each type of determination is drastically different. To view a broad summary of these compliance requirements, review the Understanding Contractual Services Under Federal Awards flowchart.
The links below are designed to help our recipients and subrecipients navigate the complexities of passing funds through to a third-party.
- I am entering into a contractual agreement with a third-party, how do I know if they are a subrecipient, contractor, or consultant?
- The determination checklist indicated I was entering into a relationship with a CONTRACTOR or CONSULTANT, what do I do now?
- The determination checklist indicated I was entering into a relationship with a SUBRECIPIENT, what do I do now?
- I have an existing agreement executed with my third-party provider but it does not comply with the required provisions, what do I do?
- I found out my third-party is entering into agreements with other parties to perform activities under this award, what do I need to do to ensure compliance?
Additional Resources
There are other resources that have been published by the Office of Justice Programs (OJP), OCJG, and various other entities to help recipients and subrecipients navigate these complex relationships. It is recommended that every recipient proposing to use funds for contractual services review each link below.