3.5 - Fixed Amount Subawards

A pass-through entity may offer fixed amount awards to subrecipients, but must request prior approval from the federal agency first. Once approved, pass-through entities may provide a fixed amount subaward up to the simplified acquisition threshold (the threshold currently is defined in the uniform guidance at $500,000 (§200.333). Under a fixed amount subaward, payment to the subawardee is based on meeting specific performance expectations, without regard to actual costs incurred under the federal award (§200.201(b)). This method of awarding funds is unlike any other financial assistance agreement. The appeal of a fixed amount subaward is the potential reduction of… Read More