Guidelines for Grant and Contract Management

403. Sponsored Consultants

The University uses the same procedures and documentation for hiring consultants as those used for establishing subawards. These procedures are applied consistently to all outside sponsored awards regardless of the purpose or the source of funding.

The Guideline below describes procedures involved in hiring and paying a sponsored consultant. In November 1994, the agreement form was revised to include an article on conflict of interest. A copy of a standard Sponsored Consultant Agreement appears below. – February 2004

A consultant is an independent contractor and not an employee of the University. A Sponsored Consultant is defined as any person hired in a professional capacity to provide specific services under a sponsored agreement (grant, contact, cooperative agreement, etc.), bringing expertise in the technical area of the project. (The consultant is generally an expert in the field.) A Sponsored Consulting Agreement may not be executed if the individual is an employee of The University of Chicago in any capacity. [If an individual is a former University of Chicago employee, you must obtain approval of the Payroll Department of the Comptroller's Office prior to any form of compensation.] A consultant employed under a sponsored project may be compensated for services, and reimbursed for travel (including meals and lodging) and other miscellaneous expenses. Any payment made to consultants must comply with the University's and the sponsoring organization's regulations on compensation and travel.

A Sponsored Consulting Agreement should be used to cover those situations when a specific skill or professional expertise is needed for a specified period of time. Consulting arrangements are not a substitute for subcontracts and are not intended to be used when part of the project is performed at another institution.

When engaging a consultant under a grant or contract, a Sponsored Consulting Agreement should be prepared prior to any services being performed. University Research Administration will prepare (and when necessary negotiate) the Sponsored Consulting Agreement for the Principal Investigator. A statement of work, the dates the services are to be performed, and a breakdown of total costs are necessary in order to complete the agreement. A copy of the agreement will be forwarded to the PI for review. A letter of endorsement bearing the appropriate departmental and divisional signatures must be obtained before returning the agreement to University Research Administration for approval.

University Research Administration will send to the consultant:

  1. Sponsored Consultant Agreement with Sponsored Consultant Invoice
  2. Debarred Vendors and Excluded Parties Screening Certificate of Compliance
  3. Consultant and Independent Contractor Questionnaire
    Note: administrators and faculty please refer to (1) ‘Payments for Professional Services Including Consulting Payments’ for guidance in determining who qualifies as an Independent Contractor/Consultant, and see especially section II. DETERMINATION PROCEDURES SECTION for explanation of the purpose and consequence of the Consultant and Independent Contractor Questionnaire; refer also to (2) the ‘Matrix of Forms for Processing Payments’ which provides instruction concerning forms required for processing payments through the Independent Contractor system; various types of Independent Contractors are listed - see specifically ‘Consulting (Paid on Ledger 5 or 6)’ and ‘Consulting (Paid on Ledger 5 or 6 and a non-U.S. Citizen)’
  4. Form W-9, Request for Taxpayer Identification Number and Certification (for U. S. citizens or resident aliens) and Form W-8BEN-I, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (for foreign aliens), to be completed as appropriate.

Please direct any questions regarding these procedures to Susan Boone, Deputy Director -- University Research Administration at SusanB@ura.uchicago.edu.

For information about paying sponsored consultants, and for guidance on deciding between a consultant and an Other Services Provider, please see Independent Contractors.
squares