because we are getting stiffed on the amount greater than the $25,000.  If
we have a subcontract that is 3 years and $500,000 we have boatloads of
work (thanks to A-133, CAS and small business subcontracting regs) to do
and we get reimbursed 43% of the first $25K or $10,750.  The remainder of
the work we do for free.  If we are going to go with an off campus rate
because we should legitimately be reimbursed for only the administraive
portion of our efforts, then we should be able to recover that percentage
on the entire 3 year, 500K subcontract.  Someone at some point devised yet
another way to limit reimbursement to universities for overhead and decided
that we could recover full on subs but only up to some arbitrary threshold.

At 08:36 AM 4/25/01 -0500, you wrote:
>Just curious? If the typical F & A rate has two parts, the administrative
>rate (capped) and the non administrative (plant and operations part). Why
>would you apply the non-administrative part to the first $25K of a
>subcontract not on campus?  Other than maximizing the amount of dollars you
>get to administer the contract.
>-----Original Message-----
>From: Herbert B. Chermside [mailto:xxxxxx@VCU.EDU]
>Sent: Tuesday, April 24, 2001 4:35 PM
>To: xxxxxx@HRINET.ORG
>Subject: Re: [RESADM-L] F&A rate on subcontracts
>
>
>Depends on your F&A rate negotiation.  However almost all (especially if
>negotiated with HHS) apply on campus rate to first $25,000 if you have a
>MTDC base.
>Chuck
>
>
>At 02:32 PM 4/24/01 -0500, you wrote:
>>Question of the week:
>>
>>I wanted to check to see how other institutions charge F&A on subcontracts.
>>We can only charge F&A on the first $25,000 of a subcontract but do you
>>charge at your on-campus rate or your off-campus rate? And what is your
>>rationale for each?
>>
>>Thanks
>>
>>Val Seaquist
>>Office of Research Administration
>>The University of Alabama in Huntsville
>>
>>
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>
>Herbert B. Chermside, CRA
>Director, Sponsored Programs Administration
>Virginia Commonwealth University
>PO BOX 980568
>Richmond, VA  23298-0568
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>OFFICE e-mail   xxxxxx@VCU.EDU
>Personal e-mail xxxxxx@vcu.edu
>http://views.vcu.edu/ospa/
>
>
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******************************************
Martha M. Taylor, Director
Office of Sponsored Programs
310 Samford Hall
Auburn University, AL 36849-5131

334-844-4438
334-844-5953 (fax)

xxxxxx@auburn.edu

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