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Virginia Tech subcontract to employee-owned business

Example 4:   Virginia Tech subcontract to employee-owned business

The situation where Virginia Tech receives the federal (or other) award and wishes to subcontract with an employee-owned company shares many similarities to Example 3 above.  Similar disclosures, management strategies, and approvals apply in order to initiate a contract between Virginia Tech and an employee-owned entity, whether the contract is initiated by the company or by Virginia Tech.  Several differences are noted below.

Additional Considerations and Required Actions: 

  • Independent oversight of subcontract:  The management plan needs to address who will oversee the subcontract.  If the faculty-owner is PI (or co-PI) on the project, the co-PI who has no connection to the company, or another independent individual, will need to oversee the administration of the subcontract. 
  • Student involvement:  If there are students involved, the sections above relating to student interests need to be addressed in the management plan. 
  • Review and approval by university officials:  Once a management plan is developed and reviewed by the designated COI Officer and others as deemed necessary, the plan will be incorporated into the COI Approval summary and routed for university approval.
  • Notification to sponsor:  One additional step is required in this situation.  The Office of Sponsored Programs is required to notify the sponsor of the conflict of interest situation and that the university has a management plan in place to mitigate any perceived risks.  Depending on the sponsor, additional detailed information concerning the mitigation plan may be required.