Sub-Award Budgeting

Budgeting Sub-award Costs

When preparing the overall project budget, include the total costs of each subaward (Direct costs +IDC =  Total costs), as one line item in the MSU Denver direct cost budget. If using the IDC (ie: indirect costs) Modified Total Direct Costs (MTDC) base, only the first $25,000 of each sub-award’s total cost is included in the calculation of MSU Denver IDC.  If using the Total Direct Costs (TDC) base, MSU Denver IDC will be assessed on the entire amount of the sub-award.

Budgeting for Fixed Price Outgoing Sub-awards (UG Sections 200.201, 200.332)

Prior approval from the federal sponsor is required if MSU Denver wants to issue a fixed price sub-award rather than a cost-reimbursement sub-award.   By federal regulation, the total cost of each fixed price sub-award may not exceed $250,000.

Principal Investigators who are contemplating a fixed price sub-award should contact OSRP during development of the proposal, prior to submission.  OSRP can assist with determining if a fixed price sub-award is appropriate.  Should it be deemed appropriate, the PI should include the following or similar statement in the budget narrative