What is the difference between a subaward and a subcontract? 

EPA distinguishes subawards and subcontracts. Subawards (i.e., subgrants) means an award of financial assistance (money or property) by any legal agreement made by the recipient to an eligible subrecipient. An eligible subrecipient is typically the same type of entity as an eligible recipient. In rare cases, federal agencies can receive funds through a subaward. Please see question 7 above for more details.

Subawards do not include procurement of services on commercial terms by a contractor or consultants. Instead, these types of costs are considered subcontracts.

Note: When categorizing budget costs, subawards belong in the ‘Other’ line item.  Subcontracts belong in the ‘Contractual’ line.