Eleanor,

I don't believe there are any regulations relating to a rate that is
accepted if one is not negotiated with the feds.  As an organization you are
contracting with and have responsibility for oversight (if you are
subcontracting with them) you must be a good steward of the funds.
Therefore, you must verify how they will bill their costs.  If they put an
F&A rate in the proposal - it must be justifiable to charge to the project.
If their labor rates, etc. are loaded - you should be confident those are
accurate and would be allowable on the project.

We have dealt with similar issues on proposals here.  If an organization has
no rate negotiated, when we get the funds and negotiate the subcontract - I
need to have a verifiable F&A rate.  Otherwise, I have no means of making
sure the costs are allocable (therefore allowable) to the project.

I hope that made some sense - feel free to call if I was unclear.

Have a good day,

John

"Eleanor M. Cicinsky" wrote:

> Hello:
>
> A faculty member is submitting a proposal to NIH.    In the budget is a
> subcontract.   The subcontractor does not have an indirect cost (F & A)
> agreement with any federal agency.   Is there a special rate the
> subcontractor can use?    Are they entitled to get F & A.     Do any of
> the agencies provide a rate that is especially designed for institutions
> without negotiated rates?
>
> Also,   what kind of fringe benefit rates should be used for
> organizations of this type?
>
> I look forward to your responses,
>   Eleanor Cicinsky
>   Temple University
>
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--
F. John Case
Executive Director
Office of Contracts and Grants
University of North Carolina at Chapel Hill
CB #1350, 440 W. Franklin Street
Chapel Hill, NC 27599-1350
(919) 966-2542
(919) 962-3352 (fax)
xxxxxx@unc.edu

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