Jennifer,
So, you are correct that generally your indirect costs are on top of whatever the direct cost limit is, so it might simply be that the admin who messaged your PI doesn't realize that the $499k limit on direct costs is on everyone's direct costs only (yours, theirs, and any other subs) and that everyone's indirects are then on top of that $499k number.  I would follow up with them directly to double check.  That said, your PI stating that [your] indirects come from [their] indirects is not correct and may have confused the person at the prime.   Your indirects actually are part of their directs, it's just that per NIH guidance, your indirects are not factored in when trying to come in under a direct cost limit.  

Thank you,
Lindsey

Lindsey Demeritt, MSEd, CRA, CPRA

e. xxxxxx@attainpartners.com

o. 407.271.4250 | m. 407.919.9556

attainpartners.com

 



On Tue, Jan 9, 2024 at 3:26 PM Cappellucci, James E. <xxxxxx@mgb.org> wrote:

 

Your institution can charge their applicable negotiated rate.  The PTE may have given you an overall limit that you have to work with. But they need to understand that the $499,000 DC cap does not include subcontractor F&A.

 

_______________

James Cappellucci

Senior Grants & Contracts Administrator, Pre-Award

Authorized Business Official

Mass General Brigham

399 Revolution Drive, Suite 735 |Somerville, MA 02145| 857.282.1724

In-office remotely 8:30 AM ~ 5:00 PM

 

For subcontracts and foundation award transmittal and status inquiries, please contact
xxxxxx@partners.org | xxxxxx@partners.org | xxxxxx@partners.org

 

From: xxxxxx@lists.healthresearch.org <xxxxxx@lists.healthresearch.org> On Behalf Of Escher, Jennifer
Sent: Tuesday, January 09, 2024 3:14 PM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] How to Calculate Direct Cost Base with Subs

 

        External Email - Use Caution        

Hello hive mind!

In my current position, we only do subawards PTE on NIH awards, mainly R01. Something weird happened today and I would like the collectives opinion’s on which way is correct of what you do, specific to NIH only.

 

As mentioned we only really do subs and every sub I have done in my career here and elsewhere, we have been given a budget, let’s say $100,000 per year for a total of $500,000 over the 5 year period for direct costs and then indirect are on top of that. Today, a university that does a lot of work in NIH, said our budget was $100,000 per year inclusive of indirect costs. We had just done another grant with a different PI and Grant Admin from this same university and this was not the case. The PI spoke up in the email exchange and said that all subawards indirect costs come from their (Prime) indirect costs and thus that is why he had to give us the way he did.

 

I have never done it this way or ever heard of it way. I guess from all of you who has way more expereince than I, is this true? Does my indirect as a subwab get awarded from your indirect as a PTE?

 

This is the specific NOFA in case you are wondering: PAR-21-166: Academic-Industrial Partnerships for Translation of Technologies for Diagnosis and Treatment (R01 - Clinical Trial Not Allowed) (nih.gov)

 

To be fair, I have no concreate policy from NIH on this, it truly has been just how we have always done it. But I don’t want to be that person if it not the case, I would love to know differently. I did find these items below, but not sure they 100% solidify my point.

 

2.3.7 Policies Affecting Applications (nih.gov)

2.3.7.1 For FOAs that include a direct cost limit, NIH policy excludes consortium/contractual F&A when determining if an applicant is in compliance with the direct cost limitation

 

Develop Your Budget | grants.nih.gov

Section: What is the difference between allowable direct costs and allowable facilities & administrative (F&A) costs?

 

 

 

Jennifer Escher, M.Ed.

Grants Administrator

 

Siemens Medical Solutions USA, Inc.
40 Liberty Boulevard
Malvern, PA 19355, USA
+1 470.927.2885
xxxxxx@siemens-healthineers.com

www.siemens-healthineers.com

 

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