But what if the project period is three years, and it is required that the
subcontract be re-negotiated each year. In this case...'the first $25,000 of
each subgrant or subcontract (regardless of the period covered by
the subgrant or subcontract)'....would seem to say that regardless of the
period covered by the subcontract/subgrant (1yr, 3yrs, 5yrs, 100 yrs) you
can take indirects on the first $25,000 of the subcontract. So, if both
institutions are required to re-negotiate each year (maybe the scope may
change, or $$ change etc..) it would seem a valid interpretation is that
$25,000 could be taken for each subcontract each year.

From a general point of view, I have always rationalized that the indirects
you receive associated with the generation of a subcontract are there to
reimburse for the costs associated with setting up/executing the
subcontract. So if you have costs each time you negotiate a new subcontract
(e.g. legal fees), it would follow that indirect reimbursement would be
permissible.

-David
David A Higginson, ACMA
Vice President for Information Systems
Arkansas Children's Hospital
1120 Marshall Street
Little Rock, AR 72202
(501) 320-3757
xxxxxx@exchange.ach.uams.edu
> Learn more about us at:  <http://www.archildrens.org/>

-----Original Message-----
From: Christa Leigh Landingham [mailto:xxxxxx@EMAIL.UAH.EDU]
Sent: Tuesday, October 24, 2000 2:27 PM
To: xxxxxx@HRINET.ORG
Subject: Re: OMB A-122 and Subgrants

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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