CHANGE IN DIRECT COST LIMITATIONS ON SOLICITED APPLICATIONS
RELEASE DATE: April 30, 2004
NOTICE: NOT-OD-04-040 (Superceded by NOT-OD-05-004)
National Institutes of Health (NIH)
(http://www.nih.gov/)
NIH announces a revision of its policy on direct cost limitations on
solicited applications published after this notice. Applications in
response to those Program Announcements (PAs) and Requests for
Applications (RFAs) that include a limitation on direct costs are to
exclude from that limit the facilities and administrative (F&A) costs
requested by consortium participants. The F&A costs requested by the
consortium will be reflected in the PHS 398 application according to
current instructions, and F&A costs awarded under these programs will
continue to be awarded under the current practice. However, these
consortium F&A costs will not be counted as a direct cost when
determining if an applicant is in compliance with a direct cost
limitation on a solicited application.
As stated in NIH’s ROADMAP Research Teams of the Future, initiative,
NIH recognizes the increased need for support of interdisciplinary
research and research teams. Programs that include a limitation on
direct costs without the exclusion of consortium F&A costs create a
disincentive to the establishment of consortiums, as the inclusion of a
consortium’s associated F&A costs reduce the amounts which can be
requested for other direct costs within a cost ceiling. This change
will allow applicants for these programs to propose the necessary
research teams via consortium arrangement without a negative impact
their ability to fully utilize the direct cost limitations of the
solicitation.
Please note that this does not change the NIH policy on the acceptance
of applications requesting direct costs of $500,000 or more for any one
year (see http://grants.nih.gov/grants/guide/notice-files/NOT-OD-02-004.html).
If you have questions on this Notice, please contact the Grants Management
Specialist listed in the RFA/PA, or the Division of Grants Policy at
(301)435-0949.
Weekly TOC for this Announcement
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