The total cost of the subcontract is your direct cost. So, you calculate F&A on the first $25,000 of that figure, regardless of whether part is their F&A. And furthermore, if you have more than one sub in a proposal,  you calculate F&A up to $25,000 on each and every one. If your subcontracts extend more than one year and are less than $25K in the first year, you continue to calculate your F&A on the sub until you reach the $25,000 limit.
 Hope this helps. cheers, Elsa Nadler

>>> xxxxxx@UFL.EDU 04/22/03 10:14AM >>>
We are having a discussion on how to assess F&A on subcontracts.

Question:
You have a subcontract for a total of $30,000. Of this amount $20,000 is
direct costs and $10,000 is the subcontract institution's F&A. Would you
assess your F&A (as the prime institution) on only the $20,000 of direct
costs or would you assess your F&A on the allowed $25,000 (our negotiated
F&A agreement states we can assess F&A to the first $25,000 of the
subcontract)?

Thanks to all who will reply. It is a policy question here and we are trying
to see how other institutions handle the assessment of F&A on subcontracts.

Thanks!

Celia Gravely

UF Bridges Project
PO Box 113359
201 SE 2nd Avenue, Suite 215
Gainesville  FL  32611-3359
Phone: 352-316-2485
FX:  352-846-2508

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