Your sub should use its negotiated rate, regardless of whether it's higher
than yours, unless the prime sponsor has placed a cap on F&A recovery.  In
that case, the restriction follows the dollars and everyone suffers.

Why is your rate so low?  Is it an off-campus rate?  If that's the case,
your sub can still use their on-campus rate, which will undoubtedly be higher.

-matt

At 01:04 PM 2/28/01 -0500, you wrote:
>Can a prime awardee issue subcontract  on a grant at a higher indirect
>cost rate than the rate provided the prime awardee.?
>
>As an example:    our rate is 25% and our subcontractor rate is 55%.
>
>Eleanor
>
>
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Matthew E. Clark, JD
Director, Office of Sponsored Programs Administration
Iowa State University
(515)294-5225

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