A subcontractor is called upon by a beneficiary to implement an action task and issues an invoice for the service provided at regular market prices.
Subcontracts must always be awarded on the basis of best value for money and/or lowest price.
No indirect costs are added to subcontracting costs for the beneficiary (i.e. costs of subcontracting are not taken into consideration when calculating the 25% flat rate for indirect costs.).
In contrast, the costs for “contracts" (cost category 6.2.D.3 "other goods and services”) are also contracts for work or services or delivery of goods, but are not related to the implementation of "action tasks" by the third party.
Another eligibility requirement is that the subcontract has been agreed and budgeted in the Grant Agreement. If this is not the case the beneficiary bears the risk of ex-post recognition of costs by the EU Commission.
The beneficiary who has awarded the subcontract is responsible for the work of the subcontractor (quality of work, timely completion etc.). It must be contractually agreed that the intellectual property created by the subcontractor is at the disposal of the beneficiary so that he/she can fulfil his/her obligations specified in the GA (e.g. by granting access rights). The FFG provides a template for such a sideletter.
It is not allowed to award subcontracts to beneficiaries in the same project or to delegate the tasks of the coordinator (see article 41.2 GA). Subcontracting to "affiliates" (parent, subsidiary, associated companies) is eligible only in exceptional cases.
More detailed information can be found ...
- in the Annotated Grant Agreement (AGA), article 13 and article 8 (overview of third parties and differentiation).