OMB Circular A-21 General Overview – F&A. OSP Brown Bag Norm Hebert, Director December 8, 2005. General Overview of A-21 and F&A (indirect costs):. Locating a copy of OMB Circular A-21 Applicability and Purpose of A-21 Acceptance of rates by Federal Agencies Standards for Allowable Costs
OSP Brown Bag
Norm Hebert, Director
December 8, 2005
- click on “Educational and Non-Profit Institutions”
- then, click on OMB Circular A-21
Applicability: All Federal agencies that sponsor research and development, training, and other work at educational institutions shall apply the provisions of this Circular in determining the costs incurred for such work. The principles shall also be used as a guide in determining the price of fixed price or lump sum agreements.
Purpose: Establishes principles for determining costs applicable to agreements with educational institutions…designed to provide that the Federal Government bear its fair share of total costs…agencies are not expected to place additional restrictions on individual items of cost.
Acceptance of (F&A) rates: Negotiated rates shall be accepted by all Federal agencies. Only under special circumstances, when required by law or regulation, may an agency use a rate different from the negotiated rate for a class of sponsored agreements or a single sponsored agreement.
Prudent person rule – action that a prudent person would take under the circumstances:
Cost is assignable in accordance with relative benefits received – allocable to sponsored agreement if cost:
$38.5 Million F&A Costs
$70 Million Direct Costs
Add 10% Direct Cost Cost-Share (provided by institution)
$38.5 Million F&A
$77 Million Direct Costs
Brown’s Total Direct Cost FY ’05: $116 Million (55%= $63.8 Million)
How much F&A did we recover?
a) > $60 Million
b) $45 Million - $59.9 Million
c) $30 Million - $44.9 Million
d) < $30 Million
MTDC = $88 Million (55%=$48.4 Million)
a) > $45 Million
b) $38 Million - $44.9 Million
c) $30 Million - $37.5 Million
d) < $30 Million