Greg,

Rate Agreements usually carry language that indicates provisional rates
(either F&A or benefits) apply "until amended". You should stick with
those rates as you have no legitimate basis for anything else.

Our strategy is to increment salaries for annual cost-of living and
include a "little extra" as a hedge against benefit rate increases,
again indicating in our justification that the stated benefit
rate/calculation is provisional and that the actual rate will be charged
when negotiated. We often get some clue as to where benefits are
expected to go in the coming year - up, up, up due to health costs -  or
two as a factor in determining what to budget/estimate for salaries.

Help any?

Larry Waxler, Director
Office of Sponsored Programs
University of Southern Maine
P.O. Box 9300
Portland, ME 04104-9300
Telephone: 207-780-4413
Telefax: 207-780-4927

>>> "Doyle-Wandell, Greg" <xxxxxx@VENTERINSTITUTE.ORG> 1/9/2007
1:51 PM >>>
I have a procedural question relating to estimating indirect costs on
proposals and applications.  My indirect rate agreement establishes
provisional rates for the period ending 12/31/06 with a new indirect
cost proposal due 06/30/07.  Obviously, until a new rate agreement is
negotiated we can only bill at the provisional rates.  That I get.
What
I am not clear on is what rate I can use for proposals and
applications?
Can I use an estimate for the indirect rates in a proposal that is
higher than our provisional rates?  My indirect rate agreement is
completely silent on proposals and it seems to my simple little minds
that I can use a higher rate.  After all, I escalate salaries,
supplies,
materials and many other direct costs, why not fringe and indirect
rates?  If this is a normal practice, is there any guidance that you
can
point me to that would substantiate escalating indirect rates?

Thanks!

Greg

============================

Greg Doyle-Wandell

Director of Sponsored Programs

J. Craig Venter Institute

9704 Medical Center Drive, 4th Floor

Rockville, Maryland  20850

Phone: (240) 268-2755

Fax: (240) 268-4000

Email: xxxxxx@venterinstitute.org

Home Page: www.venterinstitute.org

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