Certified Research Administrator Practice Exam

Which federal regulation differentiates between subawards for programmatic effort and vendor agreements for purchasing goods and services?

1. FAR

2. A-21

3. A-110

4. A-133

The correct answer is: A-110

The correct choice highlights the role of A-110, which is a federal regulation that provides guidance on the administration of grants and agreements with institutions of higher education, hospitals, and other non-profit organizations. This regulation is significant because it establishes clear distinctions between different types of agreements, specifically addressing the differentiation between subawards and vendor agreements. Subawards are generally utilized to support the programmatic aspects of a project and enable further engagement of third parties in carrying out project objectives. In contrast, vendor agreements involve purchasing goods and services that do not necessarily contribute directly to the programmatic goals of the grant. A-110 clarifies these distinctions, ensuring that organizations can appropriately comply with regulatory requirements and reporting obligations involved in federal funding. Moreover, the other options pertain to different aspects of federal procurement and compliance regulations. For instance, the Federal Acquisition Regulation (FAR) primarily addresses procurement practices for federal contracts, while A-21 (now superseded by 2 CFR Part 220) relates to the cost principles applicable to educational institutions. A-133 was focused on audit requirements for federal financial assistance, and does not address the differentiation between subawards and vendor agreements. Thus, A-110 is uniquely positioned to provide necessary guidance on this matter.