John-

We at UNH charge 6.5% of the total subcontract or our negotiated rate
on the first $25,000, whichever is less.  The 6.5% rate was developed
by identifying the indirect cost components associated with
administering subcontracts and some other factors I don't recall
offhand.  The policy was implemented about three or four years ago by
our interim VP for Research, using the rationale that the cost for
administering small subcontracts is much less than the charge
allowable under A-21.  The fact that the cost for administering large
subcontracts may be much more than the allowable charge didn't seem to
carry much weight in his decision.

The researchers seem relatively satisfied with the policy.
Administering it has been cumbersome and, of course, we aren't
recovering the amount of indirect cost we're entitled to.

Jim
--
Jim Miller, Director
Sponsored Research Accounting             Tel: (603)862-3467
Office of Sponsored Research              Fax: (603)862-3564
University of New Hampshire               Email: xxxxxx@unh.edu
Durham, NH  03824-3585

_______________________________________________
Research Administration Discussion Group wrote:
>
> We at the Desert Research Institute (part of the Univ. &
> Community College System of Nevada) are considering
> changing our current subcontracting overhead rate policy.
> Currently we charge 15% up to the Federal max as
> prescribed by A-21.  This is a lower rate than our
> negotiated Federal o/h rate.  This was established years
> ago by our VPF&A.
>
> I would like as much input as possible on the method or
> percent (%) other universities/colleges/research
> non-profits are using for charging overhead to subcontracts
> (where we are the prime).  I would like as many responses as
> possible in order to summarize what practices (or
> percents) are used across the country.  If you are using
> your full overhead rate up to $25K as prescribed in
> A-21, let me know that too.
>
> If anyone is interested in the results, let me know and
> I'll send the summary to you.
>
> Thank you in advance for you input.  I need this
> information by the end of the week.
>
> John Case
> Assistant Vice Pres. & Controller
> Desert Research Institute, Reno Nevada
> (702) 673-7396
> xxxxxx@maxey.dri.edu