POLICY OF THE NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES
(NIDDK) FOR ALLOWABLE REQUESTED BUDGET LEVELS OF COMPETING PROGRAM PROJECT
(P01) GRANT APPLICATIONS

Release Date:  January 4, 2001

NOTICE:  NOT-DK-01-004

National Institute of Diabetes and Digestive and Kidney Diseases

The purpose of this Notice is to announce new, higher allowable requested
budget levels for National Institute of Diabetes and Digestive and Kidney
Diseases (NIDDK) program project (P01) grants. 

The following new budget caps for competing P01 applications are effective
immediately:

1.  New (Type 1) program project applications may request up to $5 million in
direct costs over 5 years.

 2.  Competing continuation (Type 2) applications may request direct cost 
budgets up to 20 percent more than the previous year's direct cost portion of
the commitment level shown on the Notice of Grant Award. 
 
Competing continuation (Type 2) program projects have an absolute cap of $6.25 
million in direct costs requested for 5 years. This ceiling can be attained
only through the stepwise increments described above.

3.  Exceptions to the caps will apply to program project applications that
include subcontracts. In such cases, the Facilities and Administrative (F&A)
costs related to the subcontracts will be excluded from the requested direct
cost levels prior to application of the cap.

4.  Noncompeting years will be held to a 3 percent increase over the preceding 
year, adjusted for expansions or contractions of effort or scope as  
recommended by peer review.  Once grants reach direct cost levels of  $5
million (Type 1) or $6.25 million (Type 2) they cannot increase beyond these
levels, and are therefore not eligible to receive the  3% annual escalation.

 5.  Competing supplement applications will be accepted only for the
continuation of projects that were originally funded for a time period shorter
than the overall program project. The supplemental request may be up to 3
percent above the previous  year's support for that project(s). 
        
The full set of policies and procedures related to NIDDK P01 grants is
available at the following location:              
http://www.niddk.nih.gov/fund/divisions/DEA/review_branch/P01guidelines.htm

INQUIRIES

For questions or further information, contact:

Dr. Robert D. Hammond
Director, Division of Extramural Activities
National Institute of Diabetes and Digestive and Kidney Diseases
Two Democracy Plaza, Room 631
6707 Democracy Blvd
Bethesda, MD 20892-5456
Phone: 301-594-8834
Fax: 301-480-3505
HammondR@extra.niddk.nih.gov

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