This has been my experience...
Subcontract costs (direct and indirect) are part of the prime's direct
costs.  In this case you should assess your F&A on $25,000.

Sincerely,
Patricia Moroney

At 10:14 AM 4/22/2003 -0400, you wrote:
>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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