Your subcontractor has neogiated a facilities and adminstrative rate with a salaries, wages, and fringe benefit rather than modified total direct cost base.  This is the case for many non-research intensive universities.  The subcontractor has used its negotiated rate, as it cannot legitimately charge F&A at a rate higher than it's negotiated.

Hope this helps.

Mary Louise Healy

Mary Louise Healy
Director, Office of University Research Services
Towson University
8000 York Road
Towson, MD  21252
(410) 704-4931
FAX (410) 704-4494
Visit our Web site
http://www.towson.edu/ours

-----Original Message-----
From: Robyn Remotigue [mailto:xxxxxx@SPA.MSSTATE.EDU]
Sent: Tuesday, October 08, 2002 12:24 PM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] F&A in a subcontractor budget

I received a budget from another University that will be a subcontractor.  In the budget, they only charged F&A on the salary and fringe line item.  Naturally this would be a loss for them and a gain for us.  However, since I have never seen this done, I wanted to find out if anyone has had a budget like this one.  Is anyone aware of any particular ruling on this type of budget?  Your help would be appreciated. - Robyn

Robyn B. Remotigue
Sponsored Programs Administrator
P.O. Box 6156
Mississippi State, MS  39762

662.325.7397
662.325.9133  FAX
Email:  xxxxxx@spa.msstate.edu

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