Contracts and Subawards

In this section:

Primary Reviewer: Fiscal Expert

Secondary Reviewer: Governance/Administrative Expert

NOTE: If the health center has a sub-recipient(s), the Governance/Administrative Expert is the Primary Reviewer of element “i” and the Fiscal Expert is the Secondary Reviewer of that element.

Authority: Section 330(k)(3)(I) and Section 330(q) of the Public Health Service (PHS) Act; 42 CFR 51c.113, 42 CFR 56.114, 42 CFR 51c.303(t), and 42 CFR 56.303(t); 45 CFR Part 75 Subpart D; and Section 1861(aa)(4)(A)(ii) and Section 1905(l)(2)(B)(ii) of the Social Security Act

Health Center Program Compliance Manual Related Considerations

Document Checklist for Health Center Staff

Demonstrating Compliance

  1. Is this a Look-Alike Site Visit?

    Response is either: Yes or No

    NOTE: Because look-alikes do not receive federal funding under section 330 of the PHS Act, any aspects of a requirement that relate to the use of Health Center Program federal award funds are not applicable to look-alikes.

Contracts: Procurement and Monitoring

Select each element below for the corresponding text of the element, site visit team methodology, and site visit finding questions.

Subawards: Monitoring and Management

Select each element below for the corresponding text of the element, site visit team methodology, and site visit finding questions.


Footnotes

1. See 45 CFR 75 Subpart E: Cost Principles.

2. As defined by 45 CFR 75.329(f), procurement by “non-competitive proposals” is procurement through solicitation of a proposal from only one source.

3. See 45 CFR 75.361 for HHS retention requirements for records.

4. For the purposes of the Health Center Program, contracting for substantive programmatic work applies to contracting with a single entity for the majority of health care providers. The acquisition of supplies, material, equipment, or general support services is not considered programmatic work. Substantive programmatic work may be further defined within HRSA Notices of Funding Opportunity (NOFOs) and applications.

5. For further guidance on these requirements, see the HHS Grants Policy Statement (PDF - 1 MB).

6. Specifically, the purpose of a subaward is to carry out a portion of the federal award and creates a federal assistance relationship with the subrecipient, while the purpose of a contract is to obtain goods or services for the health center’s own use and creates a procurement relationship with the contractor.

7. Subrecipients are generally eligible to receive Federally Qualified Health Center (FQHC) payment rates under Medicaid and Medicare, 340B Drug Pricing Program, and Federal Tort Claims Act (FTCA) coverage. However, such benefits are not automatically conferred and may require additional actions and approvals (for example, submission and approval of a subrecipient FTCA deeming application).

8. For further guidance on these requirements, see the HHS Grants Policy Statement (PDF - 1 MB).

9. See 45 CFR 75 Subpart E: Cost Principles.

10. Per 45 CFR 75.521, the management decision [issued by the health center to the subrecipient] must clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action.

11. See 45 CFR 75.361 for HHS retention requirements for records.

Date Last Reviewed: