Salary Limitation on FY2011 AHRQ Grants, Cooperative Agreements, and Contracts

Notice Number: NOT-HS-11-017

Key Dates
Release Date: May 24, 2011

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 2011.  The Department of Defense and Full-year Continuing Appropriations Act of 2011 (Public Law 112-10) continues implementation of Public Law 111-117: Consolidated Appropriations Act, 2010, which 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.  No increase has been provided for federal salaries, therefore the Executive Level I salary level remains at $199,700 which will be the salary limitation for the remainder of FY2011. 

According to P.L. 111-117, "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 applications 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.

In accordance with AHRQ policy, awarded salary levels will be determined using information provided in the application. Applicants for AHRQ grants 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 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, as appropriate.

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 at (301) 427-1447 or by email at, or AHRQ Contracts Management at (301) 427-1104.

Weekly TOC for this Announcement
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