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Two questions have addressed the issue of "duplication of indirects on subcontracts." The posted responses stated "GRI is prepared to accept the normal NSF practice of paying off-campus rate on the first $25,000." However, this is not normal NSF practice--normal NSF practice is to allow for ON-campus F&A to be charged by the lead institution on the first $25k of each subcontract. This is in line with standard language in federally-negotiated F&A rate agreements.

Therefore, our norm would be to charge our full on-campus F&A rate on the first $25k of each subcontract; and each subcontractor would charge their normal F&A rate on the allowable portions of their individual budget.

Will this budgeting be acceptable to GRI? If not, universities will likely need a revision/amendment to the instructions clarifying how we are allowed to budget for F&A related to subcontracts.
asked in Budget by admin

1 Answer

We apologize, we used the term "Off-Campus" by mistake and inappropriately. The correct answer is that we expect the use of normal NSF practice of ON-CAMPUS F&A for the first $25,000 of a subcontract to another organization/institution and the organization or institution receiving the subcontract would apply its normal F&A for allowable costs in the subcontract that they receive.
answered by admin

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