I would charge indirect on the whole P.O. since you are dealing with a
vendor relationship and not a subcontractor -- it's like any other direct
cost.

Claire L. Carlson
Associate Vice President for Research
The University of Montana

At 03:29 PM 12/02/1999 -0500, you wrote:
>        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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Claire L. Carlson
Associate Vice President for Research
The University of Montana
E-mail: xxxxxx@selway.umt.edu
Phone: 406-243-5796
Fax: 406-243-6330

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