Re: Estimating fringe and indirect rates on proposals and applications Lawrence Waxler 09 Jan 2007 14:13 EST
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 ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================