1. Building a Successful Cost Proposal
Post Doc Workshop
February 12, 2019

2. Agenda Introduction Understanding the Environment
Proposal Consideration
Proposal Workflow
Questions

3. Introduction Why is this important?
Diversify funding pool
Expose your research to sponsors
Encourage collaboration
Focus on federal funding- but the building blocks will apply to all cost proposals

4. Understanding the Environment
Federal Requirements
Agency
Funding Opportunity

5. Understanding the Environment
Funding Agencies
Funding Opportunities

6. Federal Requirements
Uniform Guidance outlines cost principles relevant to proposals:
Allowable?
Reasonable?
Allocable?

7. Allowable
Consistently Treated- Similar costs must be treated the same in like circumstances, as either direct or indirect (CFR (d))
Reasonable- A prudent business person would have purchased this and paid this price (CFR )
Allocable- It can be assigned to the activity under the award (CFR )

8. Reasonable
The cost “does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was make to incur the cost.”(CFR )

9. Allocable Incurred for the project Proportionally distributed
Necessary for the overall operation of the project

10. Examples of Unallowable Costs
Personnel (e.g., salary caps)
Travel: non-economy airfare
Contractors/Subawards: experience, justification

11. Quick Quiz
What are the 3 categories to determine if a cost is acceptable?

12. Proposal Considerations
Funding Opportunity
Regulatory Considerations
Budget

13. Activity: Review Funding opportunity
READ and LOVE your funding opportunity announcement
Who and Why?
Agency (e.g., NSF, DOE, NIH)
Purpose
What and How?
Eligibility & other specifics (e.g., cost share/matching, terms and conditions)
Due Date & budget ceiling
Submission method

14. Elements of your Proposal
Title & Research Abstract
Proposal Narrative (specific aims, expected outcomes, methods)
Biosketch
Budget & Budget Justification
Literature Cited
Subrecipient Documents
Other (e.g., Commitment Letter)

15. Regulatory Considerations
Intellectual Property
Authorship/Publication
Responsible Conduct of Research

16. Preparing Your Budget Salary & Fringe Equipment Travel
Participant Support
Subawards
Other Direct cost
Indirect Cost
Documentation (e.g., equipment pricing)

17. Budget Consideration Prior approval requirements
Equipment, subawards, etc.
Cost share (if required)
Required?
Tracking appropriately
Multi-year budgets (complex and time consuming)
Inclusion of inflation & merit increases
Itemized annual budget & cumulative summary

18. Salary/Personnel Salary considerations: Name/Position Salary % Effort
Total Request
John Doe
Principle Investigator
$ ,000
50%
$ ,000
Jane Smith
Lab Manager
$ ,000
25%
$ ,500

19. Fringe Benefits Current Benefit Rates for Carnegie: Components:
Health care
Employer taxes
Workers compensation
Unemployment & life insurance
Retirement contributions
Current Benefit Rates for Carnegie:
Employee - 33%
Post-Docs – 15%
Fellows – 7.3%

20. Equipment Definition Acquisition cost of = or > $5,000
Useful life > 1 year
Includes shipping and setup costs
Aggregate cost = $5,000 or more
Component A costs $3,000 and
Component B costs $2,500
Need A & B for functionality? Capital Equipment
A or B can be used alone? Supplies

21. Travel What to consider: Domestic vs. Foreign
Estimate lodging using per diem rates (GSA site)
Actual must not exceed per diem
Lowest coach fare and Fly America Act
Upgrade for extra legroom in coach unallowable (per UG)
Other: Auto rental, mileage reimbursement, tolls, parking, taxi

22. Participant Support Costs Elements:
Stipends
Travel
Subsistence
Other (materials & supply, conference registration, tuition)
Funding purpose (outreach, to augment exposure to research)

23. Subawards or Vendor Funds provided to 3rd party (subaward or vendor)
Subaward vs. vendor classification
Ensure proper classification – we can help if you’re unsure

24. Other Direct Costs Types of Costs
Materials and supplies (special computing laptop)
Cost <$5,000 per item and used for project
Itemize
Publication costs (graphic design, photography)
Consultant services
Individual/entity providing specialized services
Consider consulting rate (itemize costs: materials, etc.)
Fees must be customary for the type of service

25. Indirect Costs: Definition
Allocation of administrative costs that are not charged directly to the award but that are required for implementation of award
Indirect Costs Includes:
Administrative Support Staff
Utilities
Supplies
Building Costs

26. Indirect Costs Calculation
Total Indirect Costs
Total Direct Cost Base (MTDC)
Indirect Cost Rate
61.53%
Modified Total Direct Costs
Total Direct Costs less:
Fellowship and Participant costs
Capital equipment of $5,000 or more
Portion of each subaward in excess of $25,000
Other costs excluded per grant terms
Item
Amount
Included in MTDC
Personnel
100,000
Fringe
32,000
Equipment
150,000
Subaward (2)
60,000
50,000
ODC
160,000
Total Direct
502,000
342,000
Indirect
210,433
61.53%
Total Budget
712,433

27. Budget Justification Salary: name, position, purpose
Fringe: benefit components & rates
Equipment: description, purpose, cost/pricing basis
Travel: who, where, when, purpose & detailed cost
Participant Support: who, travel, other expenses (e.g., stipend)
Subawards: purpose, cost (individual detailed budget & justification)
Other Direct cost: detailed cost per item, unit cost & purpose
Indirect Cost: Carnegie’s negotiated rate & cognizant agency

28. Proposal Workflow Principal Investigator:
Decide on the funding opportunity
Work with department staff in completing the application package
Providing the attachments required for the submission
Department/Administrative
Provide administrative support to the PI such as completing the proposal form pages
Uploading the attachments to the application
Review budget and justification
Sponsored Programs
Act as a resource to PI and department personnel during preparation
Create eRA Commons accounts, when needed
Submit proposal to agency
Provide assistance in correcting errors, if needed

29. Questions?

30. Helpful Links GSA Uniform Guidance: NSF Guidance: NASA Guidance:
Uniform Administrative Requirements for Federal Awards (Cost Principles, Audit Requirements)
NSF Guidance:
Proposal & Award Policies & Procedures Guide (PAPPG), January 2019
NASA Guidance:
Grant & Cooperative Agreement Handbook
Revisions per 2 CFR 200
DOE Guidance:
Grant Policy Guidance
GSA
GSA Per diem Rates Lookup