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What is 'Subcontracting'. Subcontracting is the practice of assigning part of the obligations and tasks under a contract to another party known as a subcontractor. Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology.
Subcontract / Subaward Agreement. A document written under the authority of, and consistent with the terms and conditions of a prime award (grant, contract, or cooperative agreement), that transfers a portion of the research or substantive effort of the statement of work to another institution or organization. Teaming Agreement.