University of California

Costing Policy & Analysis

Research Administration Office

Memo
Operating Guidance

No. 96-06
February 27, 1996

CONTRACT AND GRANT OFFICERS (CAMPUS AND LAB)
VICE CHANCELLORS--ADMINISTRATION

Subject: Revised FDP Terms Dated February 1, 1996

The Federal Demonstration Project General Terms and Conditions have been revised to reflect the most recent changes in OMB Circular A-110. The revised terms are dated February 1, 1996, and are accessible via the NSF Web page (http://www.nsf.gov:80/bfa/cpo/fdp/fdpgen96.htm) or through the RAO home page (/raohome/).

In addition, the agency-specific terms and conditions that appear on the NSF Web site should all now be congruent with terms that the individual agencies are currently using in their FDP awards.

Attached to this C&G Memo are two tables, "Special Restrictions on Expenditures Under the FDP" and "Prior Approval Requirements Under the FDP," that replace two similar tables that were distributed with C&G Memo 93-17, Supplement 2 (2/8/94).

Refer: Bill Sellers (510) 987-9847, william.sellers@ucop.edu

Subject Index: 02, 19

Organization Index: U-115

David F. Mears
Director
Research Administration Office

Enclosures


Revised FDP Terms

[See http://www.nsf.gov:80/bfa/cpo/fdp/fdpgen96.htm]

Rev. 2/27/96

SPECIAL RESTRICTIONS ON EXPENDITURES UNDER THE FDP1

                    Is the cost allowable without specific approval of the
                    granting agency if the cost benefits the project?
______________________________________________________________________________
                         |                                                All
Item                     | DOE   NASA   NSF   ONR   ARO    NIH2   USDA  Others
_________________________|_____________________________________________________
1. Use of non-U.S. flag  |  No    No     No    No    No     No     No     No
   carriers for air      |
   travel except in      |
   accordance with       |
   para. 18 of FDP terms |
                         |
2. Purchase of real      |  No    No     No    No    No     No     No     No
   property (para. 16.e. |           
   of FDP terms)         |
                         |
3. Pmt. of interest      |  No   Yes    Yes   Yes   Yes    Yes    Yes     Yes
   for late payment      |
   to a contractor       |
                         |
4. Pmt. of consultant    | Yes    No     No   Yes   Yes    Yes    Yes     Yes
   fee > $443/day)       |
                         |
5. Payment of salary     | N/A   N/A    N/A   N/A   N/A     No3    N/A     N/A
   at rate > cap         |
                         |
6. Reimbursement of      | Yes   Yes    Yes    No   Yes    Yes     No     Yes
   travel costs to       |
   federal employees4    |
                         |
7. Purchase of passenger | Yes    No    Yes   Yes   Yes    Yes    Yes     Yes
   carrying vehicles     |
                         |
8. Renovation of res.    | Yes   Yes    Yes   Yes   Yes    Yes     No     Yes
   space & related costs5|
                         |
9. Consulting by Federal | Yes   Yes    Yes   Yes   Yes    Yes     No     Yes
   employee that results |
   in extra compensation |
                         |
10. IDC rate in subawards| Yes   Yes    Yes   Yes   Yes    Yes     No     Yes
   greater than rate     |
   allowed in prime award|
                         |
_____________________________________________________________________________
1In addition to costs specifically unallowable under A-21.
2See PHS Grants Policy Statement for clarification of allowable and
 unallowable charges on PHS grants.
3Cap was $120,000 for FY 1991 and went up to $125,000 beginning FY 1992;
 rates are on an annual basis.
4Employee generally must obtain approval from his/her supervisor.
5Subject to conditions in Article 16

Rev. 2/27/96 PRIOR APPROVAL REQUIREMENTS UNDER THE FDP

     Is agency prior approval required if action/cost not in approved budget?
_____________________________________________________________________________
         Item         | NSF   DOE   USDA   NIH   NASA   ONR  AFOSR  EPA  ARO/
                      |                                                 ARDMC
1. Relatedness        | Yes1  Yes   Yes    Yes    Yes   Yes   Yes   Yes   Yes
                      |
2. Change in scope    | Yes   Yes   Yes    Yes    Yes   Yes   Yes   Yes   Yes
                      |
3. Change in PI       | Yes   Yes   Yes    Yes    Yes   Yes   Yes   Yes   Yes
                      |
4. Preaward costs up  |  No    No    No     No     No    No    No    No    No
   to 90 days         |
                      |
5. No-cost extension  |  No    No    No     No     No   Yes    No    No    No
   up to 1 year       |
                      |
6. Equip.>[threshold] | N/A   N/A   N/A    N/A    $25K  N/A   N/A   N/A  $1000
                      |
7. Sole source        |  No   Yes    No     No     No    No    No    No    No
   contract > $25K    |
                      |
8. Substantial        | Yes   Yes   Yes    Yes    Yes   Yes   Yes   Yes   Yes
   contracting out of |
   actual research    |
                      |
9. Contracting out    |  No    No   Yes     No     No    No    No    No    No
   to federal agency  |
                      |
10. Foreign travel    |  No    No    No     No     No   Yes2   No    No   Yes
                      |
11. Travel costs more |  No    No    No     No     No    No    No    No   Yes
    than $500 or 125% |
    of travel budget  |
                      |
12. Transfers totaling|  No    No    No     No     No    No    No    No   Yes
    more than 15% of  |
    total budget      |
                      |
13. Alteration/renova-|$10K   N/A   N/A    N/A3   N/A   N/A   N/A   N/A   N/A
    tion > [threshold]|
                      |
14. Transfer from par-| Yes    No    No     N/A4   No    No    No    No    No
    ticipant/trainee  |
    support categories|
_____________________________________________________________________________
1Not required when two or more NSF grants are to be related.
2Required even if travel appears in approved budget.
3Discuss with agency before incurring substantial (>$50K) A/R costs
 not in approved budget.
4Would apply to training grants.