How is the term 'sub-award' defined in grant management?

In grant management, a sub-award is defined as a grant or contract provided to another organization to carry out a portion of the project or research, while the primary recipient (also known as the pass-through entity) retains overall responsibility for the performance of the project. This arrangement allows the primary recipient to engage partners who possess the necessary expertise, resources, or capabilities to effectively accomplish specific components of the project.

In this context, it's important to recognize how a sub-award differs from other forms of financial support, such as loans or administrative funds. A loan involves repayment terms and is not structured as an award based on project performance. Similarly, funds designated for administrative purposes are generally not tied to specific project deliverables or outcomes as a sub-award would be.

Therefore, defining a sub-award as a grant to another organization for project performance with retained responsibility captures the essence of collaborative research efforts within grant management, highlighting the relationship and obligations between the primary entity and the sub-recipient.