Kathy:

The indirect cost (now F&A) rates limitation can be found in EDGAR
Part 75 Section 562  Indirect cost rates for educational training
projects:  "...  (c) Indirect cost reimbursement on a training grant
is limited to the recipient's actual indirect costs, as determined
by its negotiated indirect cost rate agreement, or eight percent of
a modified total direct cost base, whichever amount is less. For the
purposes of this section, a modified total direct cost base is
defined as total direct costs less stipends, tuition and related
fees, and capital expenditures of $5,000 or more.  (1) The eight
percent limit also applies to cost-type contracts under grants, if
these contracts are for training as defined in this section...".

An example that the Education Department supports other rates can
be found in the solicitations issued by the Institute of Education
Sciences.  From pg 27 of the MATHEMATICS AND SCIENCE EDUCATION
RESEARCH GRANTS PROGRAM solicitation (deadline was Sept 2005),
"Applicants should use their institution's federal indirect cost
rate and use the off-campus indirect cost rate where appropriate
(see instructions under Section 9 Special Requirements). If less
than 75 percent of total indirect costs are based on application of
the off-campus rate, the applicant should provide a detailed
justification."  Section 9 referenced says "The Institute
anticipates that the majority of the research will be conducted in
field settings.  Hence, the applicant is reminded to apply its
negotiated off-campus indirect cost rate, as directed
by the terms of the applicant's negotiated agreement."

##################################################
Dear Colleagues,

Has your institution ever received any non-training grants from the
US
Department of Education at anything higher than the 8% MTDC
"restricted"
rate?  Have you ever received a research grant from US Ed at your
federally-negotiated research F&A rate?  If so, I'd love to hear
from
you.  One of my faculty members insists that her colleagues at
other
institutions have received research grants at the full research
F&A
rate.

If you would rather not respond to this list serv, please contact
me
directly at xxxxxx@unh.edu

Many thanks,

Kathy Cataneo
Executive Director of Sponsored Research
University of New Hampshire

===============================
Wil Emmert, CRA
Research Administration
Western Michigan University
2303 Friedmann Hall
1903 West Michigan Avenue
Kalamazoo, MI 49008-5340
269-387-1576  FAX:  269-387-3999
e-mail:  xxxxxx@wmich.edu
===============================
Write the bad things that are done to you in the sand,
 but write the good things that happen to you on a piece of
marble.
-Arabian adage

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