Victoria -
Your sub- gets 8% on its adjusted direct.  (Their base will be small
because of the high trainee cost) (don't forget to get their "authorized
official" to send you a sub- proposal, to document their costing proposal);
you get 8% on your adjusted direct;, and
you get 8% on the first $25,000 of each subaward.

Chuck

At 04:05 PM 11/5/98 -0800, you wrote:
>Hello folks,
>
>I am working on a budget to be submitted to the U.S. Department of
>Education (the program is the Personnel Preparation to Improve Services
>and Results for Children with Disabilities).  The guidelines state that
>we are to use 8% of total direct costs, minus student trainee costs, as
>the IDC rate.
>
>Here is the tricky bit:  our budget includes a subcontract to another
>university to the tune of $140,000, $74,000 of which is going toward
>student trainees.  I've hunted in the OMB and EDGAR documents, and
>haven't found an answer to the following question:  Should I charge the
>8% rate -- A) on the first $25,000 of the subcontract, B) on the total
>subcontract amount, or C) on the $66,000 that does not involve student
>costs? (or maybe there's an answer D) Other, that I haven't
>considered...)
>
>I appreciate your sharing your expertise with me, so I can do this
>correctly!
>
>Sincerely,
>
>Victoria Jensen
>Associate Director
>Office of Research and Sponsored Programs
>California State University, Hayward
>
Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Comonwealth University
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