We have recently negotiated a new Facilities and Administrative Costs
 rate with DHHS and are not clear on the application of the new rates
 for each year.  A-21 Section G.7. addresses 'Fixed rates for the life
 of the sponsored agreement' and seems to imply that the rate in effect
 at the beginning of a competitve segment stays in effect for that segment.
 We have, however, received other interpretations of this section especially
 for predetermined rates.

Given the following example of negotiated PREDETERMINED rates (our fiscal
 year runs from July through June):

 7/1/96 - 6/30/97        50%
 7/1/97 - 6/30/99        45%
 7/1/99 - 6/30/00        44%

What would be the yearly rates for the following scenarios?

 1)  Competitive Award beginning 7/1/96 through 6/30/00
 2)  Competitive Award beginning 7/1/97 through 6/30/00
 3)  Competitive Award beginning 7/1/97 through 6/30/01
 4)  Competitive Award beginning 1/1/98 through 12/31/00
 5)  Competitive Award beginning 1/1/99 through 12/31/02

Has anyone had experience with this?  Will the rate change every year? Does it
 change with every budget period or the beginning of each institutional year?
 What happens to grants that end after the last date of the negotiated
 agreement?

We would appreciate your responses through the list or directly.

Nancy J. Borders, M.B.A.
Director, Grants Management
Medical College of Ohio
P.O. Box 10008
Toledo, OH  43699-0008
Voice:  419-381-4252
Fax:    419-381-4262
E-mail:  xxxxxx@gemini.mco.edu