Please refer to the PHS 398 instruction book pages 13-14 and page 19.
In brief, these state that:
"Each participating consortium/contractual organizaiton must submit a
separate detailed budget for both the initial budget period (Form Page 4)
and also the entire proprosed project period (Form Page 5)."
and
"The consortium investigator and the authorized official at the consortium
institution(s) must provide a signed statement or confirming letters that
the appropriate programmatic and administrative personnel of each
organization involved in the application are aware of the PHS consortium
grant policy and are prepared to establish the necessary
inter-institutional agreements consistent with that policy."

Our institution has a simple one page form letter of intent that is inserted
in section h of the proposal.  It is signed by both institutional officials and
both PIs.  It meets the requirements and can be faxed back and forth.

The face page is not required, however, it is very handy to have the
information that is provided on the face page if the proposal is funded
and it comes time to draft the actual subcontract agreement.

Hope this helps.

-Jennifer

>>> "Hoese, Jayne C." <xxxxxx@HSMNET.COM> 09/01/98 12:47pm >>>
1 September 1998
I'm assisting someone with a NIH grant application (PHS-398) and I
haven't competed one that includes subcontracts before.  Do I complete
a
face sheet, form dd and ee and budget justification for the subcontract
separately?

Jayne Hoese, Grants Manager
Health Research Center, Institute for Research & Education
HealthSystem Minnesota
3800 Park Nicollet Blvd
Minneapolis, MN 55416 (612) 993-2065 fax (612) 993-3741 email
xxxxxx@hsmnet.com