Reimbursement is limited to the lifetime of the overall award and subaward, so should be limited to the first $25K, even if that were to be a slow ramp-up, eg, $20K in the first year, and $5K in the second year (presumably with some greater portion to follow).  If you were to get the award one-year at a time under a new grant/contract number for each year, you might be able to make a case for $25K each year, but at my prior institution, we were asked by the faculty to consider waiving the assessment in those very rare cases where we did not receive a continuous, multi-year award.

-----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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