Subcontract

A subcontract is an agreement in which the university transfers some of funds from a grant or contract to another institution in exchange for specific services. If, for example, the University of Iowa receives a grant from the National Institutes of Health, but wants some of the research to be performed by the University of Wisconsin, the University of Iowa would negotiate a subcontract with the University of Wisconsin that specifies the research to be performed and the amount of funding that will be transferred.