Because the "on-campus research rate on the first $25K" is a convention
agreed between the Government and the research university community as a
plausable estimate of the administrative cost of issuing, maintaining, and
managing a subaward.  Actually it is probably significantly below our
actual costs, and NIH insisted, within a year of adopting this convention,
on adopting its own convention that the subaward MUST cover the entire
competitive segment of the prime's award, because that was a cost saver to
them.

Chuck

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
>Express Delivery Only:
>         Sanger Hall, Rm. 1-073
>         11th & Marshall Streets
>         Richmond, VA  23219
>Voice:  804-828-6772
>Fax     804-828-2521
>OFFICE e-mail   xxxxxx@VCU.EDU
>Personal e-mail xxxxxx@vcu.edu
>http://views.vcu.edu/ospa/
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Sanger Hall, Rm. 1-073
 11th & Marshall Streets
 Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/ospa/

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 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
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