Salary Limitation on FY2009 AHRQ Grants, Cooperative Agreements, and Contracts

Notice Number: NOT-HS-09-007

Key Dates
Release Date: June 3, 2009

Issued by
Agency for Healthcare Research and Quality (AHRQ)

This notice provides information to applicants, grantees and contractors of the Agency for Healthcare Research and Quality (AHRQ) regarding the salary cap limitations imposed for Fiscal Year 2009. The Omnibus Appropriations Act, 2009, Public Law 111-8, signed into law on March 11, 2009, which includes appropriations for the Department of Health and Human Services, restricts the amount of direct salary which may be paid to an individual under an AHRQ grant, cooperative agreement or applicable contract to a rate of no greater than Executive Level I of the Federal Executive Pay Scale. The Executive Level I annual salary rate was $191,300 for the period January 1, 2008, through December 31, 2008. Effective January 1, 2009, the Executive Level I salary level increased to $196,700.

According to P.L. 111-8, "None of the funds appropriated in this Act for the National Institutes of Health, the Agency for Healthcare Research and Quality, and the Substance Abuse and Mental Health Services Administration shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level I."

AHRQ grant/contract applications/proposals that request direct salaries for individuals in excess of the applicable RATE per year will be adjusted in accordance with the legislative salary limitation, and will include notification of this adjustment. For competing grants and cooperative agreements, adjustments will be made in the current and all future years; no funds will be awarded or committed in excess of the salary cap limitation. Multi-year contracts may be subject to unilateral modifications by AHRQ if any salary rate ceilings are established in future DHHS appropriation acts.

In accordance with AHRQ policy, awarded salary levels will be determined using information provided in the application. Applicants for AHRQ grants and applicable contracts are reminded to reflect in their proposals the actual institutional base salary of all individuals for which support is requested. In lieu of actual base salary, however, applicants/offerors may elect to provide an explanation indicating that actual institutional base salary exceeds the current salary limitation. When this information is provided, AHRQ staff will make necessary adjustments to requested salaries prior to award.

No adjustments will be made to awards from prior fiscal years. However, if funds are available, and, if the FY09 salary cap increase is consistent with the institutional base salary, grantees may rebudget to accommodate the FY09 salary cap and contractors may bill at the higher level.

The salary limitation applies to all subawards and subcontracts; it does NOT apply to consultants.

For individuals whose salary rates are in excess of Executive Level I, the grantee/contractor may pay the excess from non-federal funds.


Inquiries regarding this notice should be directed to AHRQ Grants Management (301) 427-1447 or AHRQ Contracts Management (301) 427-1789.

Weekly TOC for this Announcement
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