I presume you mean you have agreed on a "predetermined rate" or a "fixed
rate" for each of these years.  In that case, budget for that rate in each
year.  Insist that the rates over the life of the agreement be as in the
budget, rather than being fixed at the first year's rate.  This IS
allowable, under A-21.

For awards now in place that have future years' budgets at a previous lower
rate, try to renegotiate the rate to show what rates are now in
force.  First goal is to add to the budget the difference caused by the
increased rates.  But you might look at what would happen to the current
budget if the new rates were applied with the same bottom line; a secondary
goal is rebudgeting at no change in total award.  A third goal is charging
at the increased rate but with a $ cap of the F&A $ awarded.  Even that
might require negotiation; see what a representative sample of sponsors
say.  The lack of clarity here is that some sponsors agreements/regs
measure the F&A by rate and others by total $.

Chuck

At 02:55 PM 7/19/2004, you wrote:
>Greetings!
>
>Quick question...A-21 G.7. on Fixed rates for the life of the sponsored
>agreement - if you have a negotiated indirect cost rate agreement that
>provides for increases each year (example 41%, 41.5%, 42%, 42.5%), what
>rate do you use for multi-year proposals? Can you use the rate that will be
>applicable for each year, or must you use the rate the will be applicable
>for the first year for all subsequent years?
>
>I have heard this both ways...looking for clarification...
>
>Thanks!
>
>Val Kettner
>Sponsored Programs Administration
>North Dakota State University
>
>
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Virginia Commonwealth University
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