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What is a service provider and what are the rules? 

Written by CFIN Staff

A service provider is a third-party individual or organization you pay to perform specific work for your project. 

What qualifies as a service provider

A service provider: 

  • Is external to your organization  

  • Provides specialized services for your project  

  • Charges fees for work performed  

Examples include: 

  • Testing services  

  • Installation support  

  • Technical or scientific expertise  

  • Consulting services  

Rules you must follow

You must follow all of these rules: 

Independence

  • The service provider must be independent of you  

  • There must be no conflict of interest  

No dual roles

You cannot be both:  

  • A funding recipient  

  • A subcontractor on the same project  

No partnerships

A service provider cannot be a project partner  

Cost eligibility

Costs must:  

  • Be directly related to project activities  

  • Be clearly measurable and documented  

  • Be incurred and paid during the project  

Key requirement

You must be able to clearly show that the service provider’s work supports your approved project activities. 

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