When developing a proposal, it is important to determine early in the process whether a partnering organization should be classified as a subrecipient or a vendor. The determination will trigger a different set of required proposal documents and impact the indirect costs in the budget. Additionally, sponsor pre-approval may be required prior to engaging a subrecipient. In general, an entity would be considered a subrecipient when they undertake substantive work on the project and may participate in designing their work to meet the objectives of the program. The vendor is contracted to carry out specific services, and strictly carries out a specific task or service of the research plan of the PI.