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(Previous discussion continued)
Re: subcontracts Bud May (05 Dec 2000 11:43 EST)

Re: subcontracts Bud May 05 Dec 2000 11:43 EST

cathy ... here is another example - this sounds reasonable - but is it
correct?

the agency is more reliable.

bud

At 04:46 PM 12/4/00 -0400, you wrote:
>Mary
>
>The language and limitations on IC recovery against
>subcontracts is not in A-21, it is in your (F&A) Rate Agreement
>with your cognizant Federal audit agency.
>
>The Feds consider the entire project period, not just each
>individual budget period, when making the determination. Once
>you do $25,000 in business with a subcontractor, you’re done
>charging IC (oops F&A) on their costs. It doesn’t matter if it is
>one year or more.
>
>Also, one of the key items is the nature of the relationship. If it is
>an on-going relationship, no further IC will accrue – even across
>continuation grants (as opposed to multiple budget periods
>within one grant).
>
>The Feds do allow you to set the money limit back to zero if, as
>the result of a new competitive bid process, an existing
>subcontractor is rehired. That would be considered a new
>relationship and a new $25,000 limit would exist.
>
>If, however, you call an existing subcontractor and merely tell
>them to do more work, not IC can be charged on any portion
>over $25,000
>
>
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