Does a restricted indirect rate on a grant only apply to the Grantee, and not its subcontractors, which may be profit or non profit organizations?
If the subaward is for the acquisition of services or procurement of goods purchased through competitive bidding, it establishes a “vendor” relationship where tangible deliverables are bought at a determined price. This type of relationship is not considered “assistance” and therefore restricted rates could be negotiated, but not imposed. The type of recipient either in a grant or contract relationship is irrelevant to this consideration. However, if the subaward provides financial assistance pursuant to a legal agreement (even if the agreement is called a “contract”), that financial assistance would be subject to the restricted indirect cost rate requirements.
Related Questions
- When the application is a consortium of organizations, what indirect cost rate can be used for the applicant (i.e., the lead organization) and for the partners/sub-grantees?
- Does a restricted indirect rate on a grant only apply to the Grantee, and not its subcontractors, which may be profit or non profit organizations?
- Is there a standard Indirect Cost (IDC) rate for Non Profit agencies?
