POLICY OF THE NATIONAL CANCER INSTITUTE FOR ALLOWABLE REQUESTED BUDGET LEVELS OF COMPETING CONTINUATION (TYPE 2) R01 and U01 APPLICATIONS Release Date: August 7, 2001 NOTICE: NOT-CA-01-016 - (See Notice NOT-CA-08-026 Change in Allowable Requested Budget Levels of Renewal (Type 2) R01, U01, and P01 Applications for the National Cancer Institute) National Cancer Institute In recent years, the budgets of the NIH and NCI have experienced unprecedented growth. During the same period, however, increases in budget requests for both new and competing renewal grant applications have been even greater. Although the NCI recognizes the need to permit inflationary and adjustments in a competitive renewal request, budget requests have far exceeded this level. If this accelerated growth in budgets continues, it would mean that NCI would have to reduce substantially the total number of new and competing awards it could make annually. To maintain a reasonable number awards, therefore, the NCI is implementing limits on the level of increases requested for competing continuation single project research grants (R01) and cooperative agreements (U01). Beginning with the November 1, 2001, receipt date, budget requests for direct costs for NCI support competing continuation (type 2) R01 and U01 applications cannot exceed an increase of 20% over the direct cost award level in the last non-competing (type 5) year. Awardees in their last year of current support will be notified by NCI of the maximum permissible budget for a competing continuation. For all applications, the direct cost dollar cap total is exclusive of any sub-contractual Facilities and Administrative (F&A) costs that appear as direct cost in the budget of the applicant organization. For direct cost awards in excess of $250,000, calculating the new maximum level should be straightforward. Awardees seeking renewal of modular grants with such costs should explicitly show these F and A calculations if it affects the justification for an increase in number of modules being requested. If for any year budget exceeds $250,000 because of F&A calculations or a one time cost, such as equipment, a non-modular budget should be submitted. Current modular awards whose new competing continuation budget request would place them over the current NIH module limit (and who must therefore submit an itemized budget) will be held to the 20% maximum increase in dollars requested over the last non-competing year. Future year budget requests for such competing continuations cannot, over the life of the proposed project, exceed a yearly average of 20% over the last type 5 year. Awardees operating within a modular budget format may round up their request to the next higher module in the first competing year, and may also request one time equipment funds. If any year exceeds $250,000, a non-modular budget should be requested. Notwithstanding any other calculation, however, renewal applications of grants with existing modular budgets cannot request in excess of a two module increase in the first competing year. In cases where the last non-competing year budget may be substantially lower than other previous years (e.g., some epidemiological and clinical research programs), if the nature of the new research requires budget increases for one or more years above the 20 percent rule for the last non-competing year, applicants may cite the average yearly direct cost as a base for the new cap. Applicants interested in this option are required to contact the NCI program director for the currently funded grant before submitting applications. Prior approval of the NCI is required before any application with a budget exceeding these guidelines can be accepted for review. Some other examples of budget calculation questions may be found on the NCI Internet at: (http://deainfo.nci.nih.gov/grantspolicies/newbudgetcap-faq.htm) For purposes of this policy, the small number of remaining R29 FIRST awardees seeking competitive renewal of their awards as a type 2 R01 may submit a proposed budget without reference to their last non- competing year level of support, that is, without cap. Where currently active supplements have been awarded to the ongoing parent R01/U01 award, the supplemental direct cost may be added to calculate the new base of the competing continuation request only if the work funded by the supplement will continue in the new project period. After a competing award has been issued, with prior approval from NCI, awardees will be eligible to apply for other future competing and administrative supplements, even if the additional request exceeds the original cap. These caps in themselves collectively represent a level of potential future budget increases that, if recommended for full funding in even a bare majority of cases, would still require further mandated reductions of awards to fit within the likely parameters of the NCI budget. All awards, therefore, continue to be subject to future overall NIH and NCI cost containment principles in effect at the time of issuance. Applicants are also cautioned that any grant application requesting in excess of $500,000 direct cost in any year requires approval prior to submission. See: http://grants.nih.gov/grants/guide/notice-files/not98-030.html. These new limits on growth are consistent with the current NCI cap on type 2 P01 applications, which remains in force (Reference: http://grants.nih.gov/grants/guide/notice-files/NOT-CA-00-010.html). Please note also that, for U01 cooperative agreements at any budget level, prior written approval of the NCI is required for permission to submit a competing continuation (type 2) application as a U01. To assure careful consideration, any request requiring prior approval should be received by the NCI at least 30 calendar days prior to the actual receipt date. Competing continuation applications requesting increases in excess of these guidelines without prior approval will be returned without review and may result in loss of a full review cycle. In such cases, interim administrative supplements will not be provided to bridge gaps due to failure to comply with these requirements. Investigators considering submission of competing continuations affected by this policy are urged to contact their current NCI Program Director for assistance prior to the preparation of a formal application. INQUIRIES For questions or further information, contact your individual NCI program administrator or grants management specialist (listed on the current Notice of Award) or: Associate Director for Referral, Review and Program Coordination Division of Extramural Activities National Cancer Institute 6116 Executive Boulevard, Room 8051 Bethesda, MD 20892-8328 Telephone: (301) 435-5655 Fax: (301) 402-0742 Email: db85g@nih.gov


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