PCORI has a 40 percent indirect cost cap. Indirect costs are calculated by using PCORI Allowable Direct Costs. This direct cost excludes equipment costs, patient-related costs, and any subcontractor costs over $25,000 of total costs (indirect and direct) for each subcontract. For example, if a prime contractor pays each of three subcontractors $100,000, for a total of $300,000, then the prime can only apply indirect costs to $75,000.
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