<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Consolas;
panose-1:2 11 6 9 2 2 4 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
pre
{mso-style-priority:99;
mso-style-link:"HTML Preformatted Char";
margin:0in;
font-size:10.0pt;
font-family:"Courier New";}
span.HTMLPreformattedChar
{mso-style-name:"HTML Preformatted Char";
mso-style-priority:99;
mso-style-link:"HTML Preformatted";
font-family:Consolas;}
span.EmailStyle22
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72" style="word-wrap:break-word">
<div class="WordSection1">
<p class="MsoNormal">Hi all,<o:p></o:p></p>
<p class="MsoNormal">The following is from Mark Hanson regarding this question:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If there is acceptable support for the 46% and we receive it and can evaluate it -- a CPA-developed rate proposal or the proposal has been submitted to the USG -- we may be able to review and negotiate that or a lower rate. If not, and
there are otherwise acceptable grounds for a subaward vs. a vendor relationship, the prospective subawardee could simply agree to accept the 10% de minimis rate. If the prospective subawardee is unwilling to submit such records to support the 46% rate we'd
have no basis on which to assess it, no basis to agree on any rate over 10%, and likely would have concerns whether we can fulfill our pre-award subrecipient evaluation and monitoring functions under the UG.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hope this helps!<o:p></o:p></p>
<p class="MsoNormal">Theresa<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> flex-bounces@whoi.edu <flex-bounces@whoi.edu> <b>
On Behalf Of </b>Karen Schwamb<br>
<b>Sent:</b> Monday, June 7, 2021 3:43 PM<br>
<b>To:</b> FLEX <flex@whoi.edu><br>
<b>Subject:</b> [Flex] subaward IDC question - NSF convergence accelerator proposal<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p><span style="font-size:13.5pt">Hi all,</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">I have not run into this before - we have a small business subaward on this proposal. They do not have a negotiated rate agreement and their IDC rate is 46%.</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">The quote below is from the PAPPG - can they propose with the 46% rate? It sounds like with award this may be negotiated then, but I'm just not sure.</span><o:p></o:p></p>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal"><span style="font-size:13.5pt">NSF grantees will use the domestic subrecipient’s applicable U.S. Federally negotiated indirect cost rate(s). If no such rate exists, the NSF grantee may either negotiate a rate or will fund the subrecipient
using the de minimis indirect cost rate recovery of 10% of modified total direct costs.<o:p></o:p></span></p>
</blockquote>
<p class="MsoNormal"><span style="font-size:13.5pt">Thanks for your help,</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">Karen</span><o:p></o:p></p>
<p><o:p> </o:p></p>
<pre>-- <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>Karen Schwamb / Administrative Associate<o:p></o:p></pre>
<pre>Applied Ocean Physics and Engineering Department<o:p></o:p></pre>
<pre>Woods Hole Oceanographic Institution<o:p></o:p></pre>
<pre>266 Woods Hole Rd., MS 12<o:p></o:p></pre>
<pre>Woods Hole, MA 02543<o:p></o:p></pre>
<pre>Telephone: 508-289-2675<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
</div>
</body>
</html>