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Hi Karen,<br>
<br>
My understanding has been that the organization either has a
negotiated rate agreement with their cognizant organization or they
have to accept the 10% de minimus indirect cost rate recovery. <br>
<br>
I once had a similar situation, and there was tremendous angst on
the part of the sub-recipient. It does encourage the subaward
institution/organization to pursue its own negotiated indirect cost
rate, but it can be messy in the interim.<br>
<br>
Good luck!<br>
Jean<br>
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<div class="moz-cite-prefix">On 6/7/2021 3:42 PM, Karen Schwamb
wrote:<br>
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<blockquote type="cite"
cite="mid:464ebc2b-625f-9c01-0816-edcdccad97e0@whoi.edu">
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<p><font size="+1">Hi all,</font></p>
<p><font size="+1">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%.</font></p>
<p><font size="+1">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.<br>
</font></p>
<p><font size="+1"> </font></p>
<blockquote type="cite"><font size="+1">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.</font></blockquote>
<font size="+1"> Thanks for your help,</font>
<p><font size="+1">Karen<br>
</font></p>
<p><br>
</p>
<pre class="moz-signature" cols="72">--
Karen Schwamb / Administrative Associate
Applied Ocean Physics and Engineering Department
Woods Hole Oceanographic Institution
266 Woods Hole Rd., MS 12
Woods Hole, MA 02543
Telephone: 508-289-2675
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<pre class="moz-quote-pre" wrap="">_______________________________________________
Flex maillist - <a class="moz-txt-link-abbreviated" href="mailto:Flex@whoi.edu">Flex@whoi.edu</a>
<a class="moz-txt-link-freetext" href="http://mailman.whoi.edu/mailman/listinfo/flex">http://mailman.whoi.edu/mailman/listinfo/flex</a>
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