FUTURE YEAR COMMITMENTS ON AHCPR GRANT AWARDS

Release Date:  May 21, 1998

P.T.

Agency for Health Care Policy and Research

Effective immediately, the Agency for Health Care Policy and Research (AHCPR)
will reflect total cost (both direct and indirect) commitments for future
years on all AHCPR grant and cooperative agreement awards.  AHCPR is
implementing this policy to provide greater predictability of noncompeting
budget period costs and better planning for the funding of competing grants.

To implement this policy, the facilities and administrative (F&A) costs
portion of the commitment will be calculated as described below (F&A costs are
synonymous with "indirect" costs).

FACILITIES AND ADMINISTRATIVE COSTS DETERMINATIONS

The F&A cost portion of the commitments will be calculated using negotiated
F&A cost rates in effect at the time of the initial Notice of Grant Award and
for each of the noncompeting years.  If the rate agreement does not extend to
the end of the project period, the last effective rate will be used to
establish the total cost commitment for any remaining future years.

Award level adjustments will not be made in future years as a result of
changes in negotiated rates.

INQUIRIES

Grantee staff with questions about future years total cost commitments should
contact the Grants Management Specialist identified on the Notice of Grant
Award.

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