Subaward from Faculty Affiliated Company to UConn

The University may accept research subcontracts/subawards from faculty affiliated companies (FAC) in which the FAC is the sponsor. All of the relevant requirements and policies for subcontracting to the University apply regardless of the fact that the subcontracting entity is a FAC. The University Conflict of Interest Committee(s) may place specific requirements on the investigator or others working on the project to manage, reduce or eliminate the conflict.

Subaward from UConn to a Faculty Affiliated Company

If the Principal Investigator (PI) is a faculty member who has an interest in a FAC, the University will not subcontract or issue a subaward to any FAC in which the PI has an interest.

If a Co-PI on the grant has an interest in a FAC, specific rules apply if there is a subcontract or a subaward to any FAC in which the Co-PI has an interest. As a state employee, a Co-PI may be prohibited by state ethics law from having the FAC contract with the University. There is an exception that allows a subcontract or subaward if it is intended to support a collaboration to develop and commercialize an invention or discovery. Many subcontracts and subawards may come within this exception. They are permitted, provided that the following additional requirements are also met:

1. the PI does not have an ownership or other interest in the FAC receiving the subcontract or subaward
2. the PI does not receive any financial gain from making the award
3. the PI has made an independent decision based on the merits to select the FAC and the decision is not based on other factors such as personal or professional relations with the Co-PI
4. the Co-PI did not participate in the decision to make the award to the FAC
5. the FAC receiving the subaward or subcontract must be qualified to do the work, and the economic and other terms must be commercially reasonable; and
6. the evaluation of the work product and the approval of invoices from the company must be done by the PI independently, without the participation of the Co-PI. In addition, in these situations, UConn will inform the sponsor of the potential conflict and confirm that the sponsor has no objections.

The PI cannot receive a payment from the Co-PI or the company receiving the subaward or subcontract. Nor can there be any agreement to funnel subawards or subcontracts to a company in which the PI has an interest.

As noted elsewhere, this does not address any restrictions that may be imposed by the funding source, whether a federal grant or otherwise. The application of those rules needs to be evaluated in the context of the specific situation.

For assistance , contact Mark Reeves, Director, Sponsored Program Contract Services, at mark.reeves@uconn.edu.