Genomic Arrays Costs

Budgeting for Genomic Arrays for NIH Grants, Cooperative Agreements and Contracts

• Notice Number: NOT-OD-10-097, May 13, 2010

Summary: Reimbursement Policy - Application of F&A Rate

This policy will be applied prospectively to new commitments established by competing awards and by administrative supplements. Effective for new competitive segments of awards (defined as new, renewal and revision) and administrative supplements to enhance the use of GA on a project, when total purchases for GA will exceed $50,000 per year in any year of the project, the F & A rate reimbursement will be applied to a limited GA cost of $25,000 in addition to the $50,000 threshold for each respective year of the award.

• Example I: GA is budgeted at $50,000 for each year of the project: GA costs would be treated as supplies and reimbursed in accordance to our customary procedures for supplies.

• Example II: Award is for three years and GA is budgeted at $75,000 in year one and $150,000 in years 2 & 3 respectively. For each budget year the F & A rate will be applied as follows:

• Year one - applied to the $75,000: The first $50,000 as supplies plus the first 25,000 over the $50,000 ($25,000 rebudgeted in the consortium/subcontract line item) for a total of $75,000;

• Year two and three - applied to $75,000 each year: The first $50,000 will be awarded as supplies and receive full F&A. The remaining balance ($100,000) will be treated as consortium/subcontract costs where the first $25,000 will also receive full F&A. Any remaining portion (in this example $75,000) of each year respectively will be excluded from the F&A cost base calculation in accord with this policy bulletin.