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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.
Subcontracts and services agreements are both contracts between Penn and a third party organization to perform a portion of a University sponsored project or to otherwise provide services to Penn. Subcontracts are also referred to as subawards, subgrants and flow through arrangements.