You can only charge indirect on the first $25K of the entire
subcontract/subgrant. The latter is correct.

Christa Leigh Landingham, Contract Administrator
UAH
Research Administration
VBRH, E-14
Huntsville, AL  35899
(256) 824-2661
(256) 824-6677 fax

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG]On Behalf
Of Addsion Wolcott
Sent: Tuesday, October 24, 2000 2:00 PM
To: xxxxxx@HRINET.ORG
Subject: OMB A-122 and Subgrants

Okay, I've got a question for those of you who use OMB A-122. What does the
following phrase really mean concerning subcontracts?

"MTDC consists of all salaries and wages, fringe benefits, materials and
supplies, services, travel, and subgrants and subcontracts up to the first
$25,000 of each subgrant or subcontract (regardless of the period covered by
the subgrant or subcontract)"

Does this mean, for example on a subgrant that costs $100,000/year for three
years of the prime grant, I can claim indirects on the first $25K each year
for three years in a row (TOTAL $75K after three years)? Or does this mean I
can only claim indirects on the first $25K in year one and not in years two
and three (TOTAL $25K over after three years)? I'd get more doing it the
first way and less the last way. Which way, in your experience, is the
"correct" one.

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