The feds do not like to pay double indirect (F&A) costs.  F & A  money
to you for the sub  and money to the sub-contractor.  So they give you
your rate on the first $25,000 for administrative costs associated
with managing the sub-award.  Why would you need more, as the work is
being done at the sub-awardee's site and you incur no costs.
Bob
------------------------------
Robert Beattie
UMich e-Business Point of Contact
UMich Grants.gov Liaison
Managing Senior Project Representative for Electronic Research
Administration
Division of Research Development and Administration
University of Michigan
xxxxxx@umich.edu

On May 27, 2010, at 4:54 PM, Brassfield, Susan wrote:

I would appreciate clarification regarding the modified total direct
cost rate.  Our negotiated rate consists of subcontracts up to the
first $25,000 of each subgrant or subcontract.  I am under the
impression that even though the one subcontract covers four years of
the grant and is in excess of $80,000 for each of the four years, I am
only including the $25,000 for the first year and not for each of the
four years of the grant.  In other words, this first $25,000 is meant
for the contractual dollars in its entirety thus $400,000 less $25,000
and not $25,000 for each of the four years which would then equate to
$100,000.

Thank you in advance for your clarification.

Susan Brassfield, M.B.A.
Grant Specialist
Office of Research and Sponsored Programs
Midwestern University
555 31st Street
Downers Grove, Illinois  60515

Phone:  630-515-6395
Fax:      630-515-6430
E-mail: xxxxxx@midwestern.edu

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