You
may want to see if the for profit company has a general & administrative
(G&A) rate from DCAA that can be used in place of a IDC rate.
The
Defense Contract Audit Agency(DCAA), under the authority, direction, and
control of the Under
Secretary of Defense (Comptroller), is responsible for performing all contract
audits for the Department of Defense, and providing accounting and financial
advisory services regarding contracts and subcontracts to all DoD Components
responsible for procurement and contract administration. These services are
provided in connection with negotiation, administration, and settlement of
contracts and subcontracts. DCAA also provides contract audit services to some
other Government Agencies.
Sharon D.
Smith
Research
Development Specialist
MTSU Office of
Research Services
(615) 898-5894
(Office)
(615) 898-5028
(Fax)
From: Research
Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Lisa
Jukkala
Sent: Thursday, April 01, 2010 2:45 PM
To: xxxxxx@hrinet.org
Subject: [RESADM-L] Subcontracting with a For-Profit w/o a F&A Rate
Hi All,
Michigan Tech is looking into potentially subcontracting with a for-profit that
does not currently have an established F&A rate. No in-house F&A
rate...no federally approved F&A rate. Have others run into this
situation? If so, have you allowed those entities to direct charge their
general and administrative costs or have you strongly encouraged them to
develop a rate? Also, if a rate is to be developed, is there a certain
threshold that should trigger our review and approval of the back-up of such
rate? Our prime sponsor is the Department of Defense and the total amount
that we would potentially be subcontracting to this entity is roughly $2M over
a five year period.
Any guidance you can relay would be greatly appreciated.
Thanks.
--
****************************************
Lisa Jukkala
Manager, Government Contracts/Training
Sponsored Programs Office
Michigan Technological University
Phone: 906/487-2226
Fax: 906/487-2245
E-mail: xxxxxx@mtu.edu
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