Re: OMB A-122 and Subgrants Higginson, David A 24 Oct 2000 18:03 EST

A more practical scenario may be that a PI is contracting with an
institution for the first time and is uncomfortable awarding a three year
subcontract. Issuing the contract for one year at a time may allow the PI to
review performance after the first term and add additional productivity
measures/reporting in the second and third terms if appropriate. This can
involve detailed negotiations each year which are coordinated by the
Research Support Office. In this case the scope of work may not change, but
the contract terms have, and have incurred a great deal of time and effort
by the research support personnel (or hired legal help). Other people may
have other examples, but this is where it gets hard to apply generalized
one-line rules to all the circumstances we encounter.

On the other end of the spectrum, I've heard of other institutions that only
take f&a on the first $25K for the first subcontract to that institution. So
they may have multiple subcontracts to one institution, covering many
different grants, but only take the F&A the first time they contract with
that institution (ever). This would seem to very relevant if you have many
grants that all need the same work done (e.g. blood tests) and everyone uses
the same outside lab. In this case you could be using the same boiler plate
contract for each grant, working with the same person, and incurring little
cost/time.

-David

-----Original Message-----
From: Addsion Wolcott [mailto:xxxxxx@HOTMAIL.COM]
Sent: Tuesday, October 24, 2000 3:14 PM
To: xxxxxx@HRINET.ORG
Subject: Re: OMB A-122 and Subgrants

This is interesting. Thanks for all the responses. Some of you have said we
can only get indirects on the first 25K during an entire PROJECT PERIOD not
each budget period, and some of you say we need to change the scope of work
or "tasks" each year before we call it a "new subgrant" and then claim the
indirects on it. Is a change in scope realistic enough during a project
period to warrant changing the subgrant and claiming indirect costs? Are
there other situations that allow deviating from the scope so  much from the
original application that we would turn around and have to re-negotiate the
subgrants? It seems like, from a common sense or perhaps naive perspective,
that changing the scope that much would mean you'd have to go back to the
awarding agency and get the whole thing approved all over again.

Thanks again,

Addison

>From: Marie Smith <xxxxxx@ECOSTUDIES.ORG>
>Reply-To: Research Administration Discussion List <xxxxxx@hrinet.org>
>To: xxxxxx@HRINET.ORG
>Subject: Re: OMB A-122 and Subgrants
>Date: Tue, 24 Oct 2000 15:21:49 -0400
>
>You can only claim F&A on the first 25K.
>  In your case that would occur in year one.
>
>%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
>Marie F. Smith
>Manager of Grants Administration
>Institute of Ecosystem Studies
>PO Box AB, 65 Sharon Turnpike
>Millbrook, NY 12545
>Tel: 845-677-5343
>Direct Line: 845-677-7600 x 112
>FAX: 845-677-5976
>E-mail: xxxxxx@ecostudies.org
>
>
>-----Original Message-----
>From: Addsion Wolcott [mailto:xxxxxx@HOTMAIL.COM]
>Sent: Tuesday, October 24, 2000 12:00 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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