For applications submitted with Cycle 3 2016, or for future cycles, a prime applicant may assess its indirect costs on the first $25,000 of total costs (indirect and direct) on each subcontract. Consortiums may assess their indirect costs on their allowable direct costs in keeping with PCORI budget policies. Each consortium must use their federally negotiated, independently audited or negotiated indirect cost rate not to exceed 40% of the allowable direct cost base. The same budget requirements that apply to the prime also apply to subcontracts.
While consortium indirect costs must be noted in the prime applicant’s direct cost budget, consortium indirect costs are not included in the applicant’s direct cost budget cap, similar to NIH practice.
Note: For ‘total cost’ awards, consortium indirect costs are included in the total cost of the project. Refer to the PFA to determine if the budget cap is based on total direct costs to total costs.