What many of the responders have said is normally correct.  However, you
need to be careful about the mechanism involved.  Specifically, we had a
funder (NIH) that required closeout of the four subs each year and issuance
of new subs each year.  Translating to this situation, the first $25K was on
each of the subs each year.  So do you amend the original sub ($25K the
first year in TDC) or issue a new sub each year ($25K in TDC each year).

Wil Emmert, CRA
Western Michigan University

On Thu, 27 May 2010 17:15:15 -0400, Bob Beattie <xxxxxx@UMICH.EDU> wrote:

>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
>
>
><image001.gif>
>
>
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