Salary Limitation on FY2012 AHRQ Grants, Cooperative Agreements, and Contracts

Notice Number: NOT-HS-12-007

Key Dates
Release Date: February 7, 2012

Issued by
Agency for Healthcare Research and Quality (AHRQ)

Purpose

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 2012. 

The Consolidated Appropriations Act, 2012 (Public Law 112-74), signed into law on December 23, 2011, restricts the amount of direct salary which may be paid to an individual under an HHS grant, cooperative agreement or applicable contract to a rate of no greater than Executive Level II of the Federal Executive Pay Scale.  Currently the Executive Level II salary level is $179,700.  Note that this is a change and represents a decrease in the salary cap limitation; recent past Appropriations had limited the amount of direct salary which may be paid to an individual to a rate of no greater than Executive Level I.

According to P.L. 112-74, Sec. 203: “None of the funds appropriated in this title 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 II."

IMPLEMENTATION:

For AHRQ FY2012 competing and non-competing awards with an initial ISSUE DATE on or before December 22, 2011, the salary limitation is limited to Executive Level I (currently $199,700).

For AHRQ FY2012 competing and non-competing awards with an initial ISSUE DATE on or after December 23, 2011, the salary limitation is limited to Executive Level II (currently $179,700).

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, 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.

AHRQ competing grants awarded on or after December 23, 2011, 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.  Adjustments will be made in the current year and all future years; no funds will be awarded or committed in excess of the salary cap limitation. AHRQ competing grant awards with an initial issue date on or before December 22, 2011, that reflect salary levels at or above the new salary limit of Executive Level II may apply the Executive Level I salary level for the duration of the FY2012 award period; however, future year committed levels for these awards will be adjusted to reflect Executive Level II.

AHRQ non-competing award committed levels will NOT be recalculated to adjust for the decrease in the salary limitation.  For AHRQ FY2012 non-competing awards with initial issue dates on or before December 22, 2011, the applicable salary limitation is Executive Level I.  For AHRQ FY2012 non-competing awards with issue dates on or after December 23, 2011, the applicable salary limitation is Executive Level II.  For non-competing grants limited to Executive Level II, grantees may rebudget, in accordance with HHS and institutional policy, funds freed as a result of the lower salary cap unless these funds are otherwise restricted. 

Budget periods awarded using previous fiscal year funds use the salary limitation that was in effect for that particular fiscal year.

The salary limitation applies to all subawards and subcontracts.

The salary limitation does not apply to consultants, although, as with all costs, consultant payments must meet the test of reasonableness and be consistent with institutional policy.

An individual’s base salary is not constrained by the legislative provision for a limitation of salary.  The rate limitation simply limits the amount that may be awarded and charged to AHRQ grants and contracts.  For individuals whose salary rates are in excess of Executive Level II, the grantee/contractor may pay the excess from non-federal funds.

Inquiries

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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Research (OER) 		  National Institutes of Health (NIH) - Home Page National Institutes of Health (NIH)
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Bethesda, Maryland 20892 		  Department of Health and Human Services (HHS) - Home Page Department of Health
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