Re: OMB A-122 and Subgrants HopperJanetL@xxxxxx 25 Oct 2000 07:32 EST

David, unfortunately, you are dealing with the Federal Government and they
are not always logical.  Everything I have read from them, says you only get
F&A on the first year regardless of how you handle the re-issuance of the
contract in the following years.

Janet Hopper
Director, Grants and Cost Accounting
Phone (501)686-6841
Fax: (501)296-1295

 -----Original Message-----
 From:   Higginson, David A
[mailto:xxxxxx@EXCHANGE.ACH.UAMS.EDU]
 Sent:   Tuesday, October 24, 2000 6:04 PM
 To:     xxxxxx@HRINET.ORG
 Subject:        Re: OMB A-122 and Subgrants

 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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