Scott you are correct. Your institution can only receive indirect costs on the first $25,000 of the sub-award over the life of the project. So essentially, you all will not receive any indirect costs on the remaining $225,000 budgeted for the sub-award agency. It doesn't matter that you are electing to renew the sub-award agreement annually. The agency is budget to receive the whole $250,000 over the life of the project.

Sharon D. Smith, M.S., CRA
Research Development Specialist
MTSU Office of Research Services
(615) 898-5894 (Office)
(615) 898-5028 (Fax)

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Scott Niles
Sent: Tuesday, September 11, 2012 12:58 PM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] MTDC/subaward question

Hi folks,

Quick question:
If we are developing a 5-year budget, and included in that budget is a subaward to another institution (let's say it's a total of $250,000 over the entire 5-year project period), is my institution allowed to take indirect costs from the first $25k for each project year, or only the entire project period?

Our institution tends to do one year contracts on such multiyear projects for subcontracts, and renew them each year; however, my argument is that the project is one large scope of work for a multiyear period, and as such, we should only take indirects from the first $25k for the total five year cost of the subaward.

I would appreciate everyone's take on this.

Thanks!
Scott

Scott Niles, MA, CRA
Grants and Contracts Administrator
Office of Research and Sponsored Programs Morehead State University
901 Ginger Hall
Morehead, KY 40351
Phone: 606-783-2278
Fax: 606-783-2130
Web site: http://www.moreheadstate.edu/research

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