NOT-OD-09-038

NIH announces a change in the existing policy on the threshold for negotiation of Facilities and Administrative (F&A )/Indirect Costs (IDC) costs for phase II small business innovation research (SBIR) and Small Business Technology Transfer (STTR) grants. Effective immediately, requested F&a cost rates of 40 percent of total direct costs or less will require not further justification at the time of award, and F&A costs will be awarded at the requested rate.

This policy applies to all competing SBIR and STTR applications submitted for fiscal year (FY)  2009 funding (i.e. applications assigned to the October 2007, January 2009, and May 2009 Council rounds) and to all competing awards issued here forward. Non-competing awards funded in FY2009 or earlier will continue to be funded at the committed level if between 25 percent and 40 percent.

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