I believe that we all agree that F&A (indirect) should be charged only to
the first $25K of a subcontract issued under a contract or grant. I'm
curious as to how other universities would handle the following situation:

 A university purchase order is issued (from a contract/grant account) to a
company/individual/whatever in an amount greater than $25K for something
such as computer lab. maintenance, calibration of equipment, machining of
parts. (This is just a regular requisition = purchase order situation not a
university subcontract under a prime with university T&C's and prime
flow-down clauses.) Should we charge indirect on only the first $25K of this
purchase order amount? If so, are we saying that this purchase order is a
subcontract? If not, why not?

As always, thank you for your input.

Val Seaquist
Office of Research Administration
The University of Alabama in Huntsville
256-890-6000 x 228
256-890-6677 (fax)
xxxxxx@email.uah.edu

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