How do I calculate whether I am under the direct cost limit?

To calculate whether a project is within the direct cost guidelines, the applicant should calculate the sum of all direct costs for both the prime institution and all subcontractors. 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 the NIH practice. For example, if the total costs are $12.6 million, but the total direct costs of the prime recipient and subcontractors together is only $9 million, then the project is within the $10 million cap. (The prime institution may have $5 million in direct costs and $2 million in indirect costs and the subcontractors total $4 million in direct costs and $1.6 million in indirect costs.)