USAID Definitions (jargon) – Consultant, contract, contractor, grant, subaward, etc.

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A consultant is an individual with specialized skills who, although not on the
organization’s payroll as an employee, provides personal services to the organization under an
agreement/contract which establishes an employer-employee relationship between the organization
and the individual providing the services. Consultants are typically individuals who are
experts with excellent qualifications and are usually regarded as authorities or practitioners
of unusual competence and skill by other individuals engaged in the same profession. An
employer-employee relationship may be found to exist when the organization selects the
individual based on expertise in a particular field, directs the individual’s work, and exercises
day-to-day control of the individual’s activities.

Contract – A legal instrument by which a non-federal entity purchases property or services
needed to carry out the project or program under a federal award. The term as used in this part
does not include a legal instrument, even if the non-federal entity considers it a contract, when
the substance of the transaction meets the definition of a federal award, subaward, or
subgrant as defined in this section.

Contractor – An entity that receives a contract as defined above. The Uniform Guidance
replaced the word “vendor” with the word “contractor.” Contractors are governed by Uniform
Guidance Section 200.319 (Competition) and follow procurement requirements.

Grant or Grant Agreement – A legal instrument of financial assistance between a federal
awarding agency and a non-federal entity that, is used to enter into a relationship the principal
purpose of which is to transfer anything of value from the federal awarding agency to carry out a public purpose authorized by a federal law, and not to acquire property or services for the
federal awarding agency’s direct benefit or use. Grant agreement does not include an
agreement that provides only direct federal government cash assistance to an individual, a
subsidy, a loan, a loan guarantee, or insurance It is distinguished from a “cooperative
agreement” in that it does not provide for substantial involvement between the federal
awarding agency or pass-through entity and the non-federal entity in carrying out the activity
contemplated by the federal award.

Pass-through entity – A non-federal entity that provides a subaward to a subrecipient to carry
out part of a federal program. (Uniform Guidance Section 200.74) The EDD is the pass-through
entity for WIOA Title I Adult, Dislocated Worker, and Youth programs, and other federal grant
awards.

Subaward or Subgrant – An award provided by a pass-through entity to a subrecipient for the
subrecipient to carry out part of a federal award received by the pass-through entity. It does
not include payments to a contractor or payments to an individual that is a beneficiary of a
federal program. A subaward may be provided through any form of legal agreement, including
an agreement that the pass-through entity considers a contract. (Uniform Guidance Section
200.92)

Subrecipient or Subgrantee – A non-federal entity that receives a subaward or subgrant from a
pass-through entity to carry out part of a federal program, but does not include an individual
that is a beneficiary of such program. A subrecipient or subgrantee may also be a recipient of
other federal awards directly from the federal awarding agency. (Uniform Guidance Section
200.93) Local Areas are the subrecipients of WIOA funds and other federal grant awards.

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