David,

In A-122, Section D.3.d there is no specific guidance to the $25K limit
on subcontracts, it just states "major subgrants or subcontracts" should
be excluded from the base.  For the most part, the government would
refer to A-21 which states under G.2 - that F & A costs can be
distributed to subgrants and subcontracts up to $25,000 (regardless of
the period covered by the subgrant or contract).  Also, your overhead
rate agreement should state what your MTDC base is, and therefore how
you treat F& A costs on subawards.

For the most part, you apply your F & A rate to subawards up to $25,000,
regardless of the life (periods) of the award.

Hope this helps

John Case
Assistant VP and Controller
Desert Research Institute
Reno NV
(702) 673-7396

Higginson, David A wrote:
>
> This is a fairly simple question, but I am having trouble finding the
> definitive text:
>
> Does anyone know the specific area of A-122, or any other relevant
> document, that describes in detail how F&A should be taken on
> subcontracts? I am particularly interested in guidance on determining if
> F&A should be taken on the first $25k each year/every year, each renewal
> of subc, or just the first time a subc is undertaken with an entity. Our
> institution is not under A-121, but if anyone has guidance from those
> rules I would appreciate it.
>
> TIA,
>
> -David
>
> David A Higginson, ACMA
> Administrative Director
> ACHRI
> 1120 Marshall Street
> Little Rock, AR 72202
> Tel: (501) 320-3757
> Fax: (501) 320-3547
> Email : xxxxxx@exchange.uams.edu
> WWW: http://achri.ach.uams.edu