Can subrecipients receive Indirect Costs (IDCs)?
Indirect Cost terms flow down from the prime award. If the prime grant collects IDCs at MSU’s federally negotiated rate (i.e. 42.5% modified total direct costs) then the subrecipient is allowed to collect at their federally negotiated IDC rate. If there are any restrictions, such as a reduced IDC rate, on the prime grant, this same restriction flows down to the subrecipient. A copy of the recipient’s federally negotiated IDC rate agreement is required.
