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Fixed Price vs. Cost Reimbursable Subawards

Cost Reimbursable

Under a cost reimbursable subaward, the Subrecipient invoices UF for expenses incurred under the subaward and then is reimbursed. The expenses, as always, should be allowable, allocable, and reasonable and invoices should include sufficient detail for audit purposes.

Fixed Price

Prior approval from federal sponsors is required if UF wants to issue a fixed price subaward rather than a cost-reimbursement subaward.   By federal regulation, the total cost of each fixed price subaward may not exceed $150,000.

Under a fixed price agreement, various milestones and/or deliverables are established along with a corresponding price for each. Once a milestone is met or a deliverable received and accepted by the UF PI, the Subrecipient may invoice for the corresponding amount due.  Invoices need not include details of expenses. The first milestone/deliverable may be full execution of the subcontract which can be beneficial when dealing with entities that do not have the resources to incur expenses for later reimbursement.