Other Consultants and Subcontractors (if applicable)  

Section Basics 

Involvement of consultants or subcontractors in the project is permitted provided the work is performed in the United States.  For exceptions to this rule, please see section III D (need to get more info & clarification). If consultants and/or subcontractors are to be used, this section of the application must identify them by name, identify whether the party is being proposed as a consultant or a subcontractor, and provide Letters of Commitment (LOC) from an authorized representative of the subcontractors and/or consultants. The LOC must provide a detailed cost estimate, including costs for labor, equipment, and materials, if any, for the consultant and/or subcontractor, as well as a statement certifying that the subcontractor(s) and/or consultant(s) have agreed to serve in the manner and to the extent described in the Work Plan section of the application.   

 

Each LOC must be on official letterhead, signed by an authorized representative of the subcontractor/consultant, and include the contact information for the authorized representative.    LOCs should be attached as an “Other Attachment” in field 12, on the Research & Related Other Project Information form.  If selected for a grant, the DOE contracting officer will verify the participation of any subcontractor(s) and/or consultant(s) and will require budget and budget explanations for the subcontractors and verification of the rates for consultants.   

 

Section Goals 

  1. Identify the name and address of the subcontractor(s) and/or consultant(s), and address, phone number, and email address of the authorized representative for the subcontractor(s) and/or consultant(s).
  2. 2.  In the Work Plan, describe in detail any work to be completed by any subcontractor(s) and/or consultant(s), including the name of the officials who will oversee that work.
  3. Provide a detailed cost estimate, including costs for labor, equipment, and materials and statement from the subcontractor(s) and/or consultant(s) that they have agreed to serve in the manner and extent described in the Work Plan section. 
  4. 4.  Provide a LOC from the subcontractor(s) and/or consultant(s), on official letterhead, signed by an authorized representative, which commits the subcontractor(s) and/or consultant(s) to participate in the project as described in the application.

 



Pro tips: 

  • Consultants, as opposed to subcontractors, are typically individuals who are not using any institutional or organization facilities and work as subject matter experts.  These individuals often bill by the hour.  Subcontractors, on the other hand, are entities such as a university, Federal lab, or private business that provides goods and services to an SBIR or STTR project. 

  • For a Phase I SBIR proposal, up to 33% of the project may be subcontracted to a consultant or subcontractor.

  • Bringing a university faculty member onto your project as a consultant may reduce the time, cost, and administrative burden associated with making them part of your team.

  • Bringing a university or Federal Laboratory staff member onto your team as a consultant may also avoid some of the intellectual property issues that can arise if the university or lab is made a subcontractor on the project.  

  • Having a well-known institution or company as a subcontractor can elevate the credibility of your company’s efforts and application to a greater extent than if just an individual from that institution joins the project as a consultant.  

  • Be sure to contact the subcontractor(s) and/or consultant(s) that you are working with early in the process so that there are no delays gathering the cost estimate, LOC, and information concerning their portion of the project.  Because of the size of some institutions, it can be difficult to get all the necessary forms and information on short notice.  

  • It may be useful to supply the subcontractor(s) and/or consultant(s) with a draft of the LOC for your application package.  Providing a draft will ensure that the letter includes all necessary information and will make it easier for them to complete and return to you quickly.   


Sample Letter of Commitment:


Phase 0 Resources:

Phase 0 tutorial podcast: What is the Difference between a Consultant and a Subcontractor? 

https://doetutorials.dawnbreaker.com/tutorials/tutorial-22/ 

 

Phase 0 tutorial pdf:  What is the Difference between a Consultant and a Subcontractor? 

https://doetutorials.dawnbreaker.com/wp-content/uploads/2022/04/DOE_Tutorial_22_040822-508-Final-1.pdf