I am trying to locate the actual rule, citation, law, whatever for the following situation:

I have a P.I. who wants us to lower (cost share) our normal indirect rate in a proposal going to a commercial firm. We have told him that we cannot do this because, if we charge the commercial firm a lower indirect rate (lower than what our negotiated rate agreement allows), then the Federal government could come in and demand the same privilege on all Federal contracts. Everyone is saying "yeah, that's right" but the P.I. wants to see it in writing and we are all drawing a blank as to the location of the rule. Can someone point me in the right direction. Thanks!

Val Seaquist
Office of Research Administration
The University of Alabama in Huntsville