Common use of Use of judgment in making determination Clause in Contracts

Use of judgment in making determination. In determining whether an agreement between a pass-through entity and another non-Federal entity casts the latter as a subrecipient or a contractor, the substance of the relationship is more important than the form of the agreement. All of the characteristics listed above may not be present in all cases, and the pass-through entity must use judgment in classifying each agreement as a subaward or a procurement contract. If the agency determines that the scope of work falls under a subrecipient relationship, all of the information below must be included in any subaward agreement:

Use of judgment in making determination. In determining whether an agreement between a pass-through entity and another non-Federal entity casts the latter as a subrecipient or a contractor, the substance of the relationship is more important than the form of the agreement. All of the characteristics listed above may not be present in all cases, and the pass-through entity must use judgment in classifying each agreement as a subaward or a procurement contract. If the agency determines that the scope of work falls under a subrecipient relationship, all of the information below The subawardee must be included in any compliance with the below and must note the required information in their subaward agreementagreements: