As a reminder, AU's negotiated rate assesses indirect costs on: total direct costs excluding capital expenditures (building, individual items of equipment, alterations and renovations), and that portion of each subaward in excess of $25,000.
- Purchase including shipping and sales tax of tangible, non-expendable personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. This includes software costing $5,000 or more per copy license (including the cost of sales tax, shipping, and any installation charges).
- Fabrication of equipment
Rent, Alterations and Renovations:
- Off-campus rental of space and related maintenance costs (janitorial, utilities) but only if they are included in the rental agreement.
- Rent, alterations and renovations does not include other kinds of rental costs, such as for hotel rooms, equipment, or automobiles.
Subawards/Subcontracts in Excess of $25,000:
- That portion over $25,000 of each subcontract with a third party.
- Facilities and Administrative (F&A) costs are assessed on the first $25,000 during each competitive project period.
- The initial $25,000 of each subaward is included in the base.
- When issuing multiple subcontracts to the same institution, exclude that portion over $25,000 of the combined amount of all of the subcontracts to that institution.