CllgDc National Academy of Sciences 530196932 12/6/04 0350
PROVISIONAL RATE AGREEMENT
Institution: National Academy of Sciences
500 5th Street
Washington, D.C. 20001
The Indirect Cost and Fringe Benefits rates contained herein are for use on grants
and contracts and/or other agreements issued or awarded to the National Academy of
Sciences by all Federal Agencies of the United States of America, in accordance
with the cost principles and provisions mandated by the Office of Management and
Budget (OMB) Circular A-122. These provisional rates shall be used for forward
pricing and billing purposes for the National Academy of Sciences’ Fiscal Year
2005 or until amended.
SECTION I: RATES - TYPE: PROVISIONAL (PROV)
EFFECTIVE PERIOD
TYPE ACCOUNT FROM TO RATE BASE APPLICABLE TO LOCATION
Prov Overhead 1/1/05 Until Amended 66.95% (a) All programs Onsite
except offsite
programs
Prov Overhead 1/1/05 Until Amended 29.69% (b) Programs Offsite
Performed
Offsite
Prov Subagreement/ 1/1/05 Until Amended 3.64% (c) All programs All
Flow-Thru
Prov G&A 1/1/05 Until Amended 16.45% (d) All Programs All
Prov Leave 1/1/05 Until Amended 16.06% (e) All Programs All
Prov Fringe 1/1/05 Until Amended 32.85% (f) All Programs All
Benefits
Cost of Money Rates (COM)
Prov Overhead 1/1/05 Until Amended 6.6833% (a) All programs Onsite
COM except offsite
programs
Prov Overhead 1/1/05 Until Amended 0.7206% (b) Programs Offsite
COM performed
Offsite
Prov Subagreement 1/1/05 Until Amended 0.0914% (c) All programs All
COM
Prov G&A COM 1/1/05 Until Amended 0.9271% (d) All Programs All
DISTRIBUTION BASES
(a) Direct labor dollars composed of total direct salaries and wages, (including
overtime), onsite leave, fringe benefits, consulting fees onsite, temporary
personnel onsite, base borrowed personnel onsite, and other personal services onsite
performed at 2001 Wisconsin Ave., 2101 Constitution Ave., and 500 Fifth Street..
(b) Program Direct labor dollars composed of total direct salaries and wages
(including overtime), offsite leave, fringe benefits, consulting fees offsite,
temporary personnel offsite, base borrowed personnel offsite, and other personal
services offsite performed outside of 2001 Wisconsin Avenue, 2101 Constitution Ave.,
and 500 Fifth Street (excludes direct salaries and wages, accrued leave, and fringe
benefits of NAS employees assigned to RERF).
(c) Subcontract/Flow-Thru Administration base is composed of specific accounts.
(See Appendix C of DS-1 for list of accounts within flow-Thru G&A base).
(d) G&A Base Value Added Cost Input is composed of Onsite base, Onsite Assessment,
Offsite base, Offsite Assessment, Flow-Thru Assessment, Other Direct cost, and
National Academy Press applicable costs.
(e) Gross salaries and wages less: spending account, overtime premium, annual
leave, salary continuation, holiday leave, other leave, hourly employees, full time
temporaries, part-time regular (<50%), part-time temporary, hourly and severance pay.
(f) The leave base described in (e) above, plus part-time regular (<50%),
part-time temporary, hourly and severance pay.
SECTION II - GENERAL
A. LIMITATIONS: Use of the rates set forth under Section I is subject to any
statutory or administrative limitations and is applicable to a given grant ,
contract or other agreement only to the extent that funds are available and
consistent with any and all limitations of cost clauses or provisions, if any,
contained therein. Acceptance of the rates agreed to herein, is predicated
upon the following conditions: (1) that no costs other than those incurred by
the grantee/contractor were included in this indirect cost pool as finally
accepted and that all such costs are legal obligations of the
grantee/contractor and allowable under governing cost principles; (2) that the
same costs that have been treated as indirect costs are not claimed as direct
costs; (3) that similar types of costs have been accorded consistent accounting
treatment; and (4) that the information provided by the contractor/grantee,
which was used as a basis for acceptance of the rates agreed to herein, and
expressly relied upon by the Government in accepting the said rates is not
subsequently found to be materially incomplete or inaccurate.
B. ACCOUNTING CHANGES: The rates contained in Section I of this agreement are
based on the accounting system in effect at the time the agreement was
established. Changes to the method(s) of accounting for costs, which affects
the amount of reimbursement resulting from the use of these rates, require the
written approval of the authorized representative of the cognizant negotiating
agency for the Government prior to implementation of any such changes. Such
changes include but are not limited to changes in the charging of a particular
type of cost from indirect to direct. Failure to obtain such approval may
result in subsequent cost disallowances.
C. USE BY OTHER FEDERAL AGENCIES: The rates set forth in Section I were
established in accordance with and under the authority set forth in OMB
Circular A-122. Accordingly, such rates shall be applied to the extent provided
in such Circular to grants, contracts and other agreements to which OMB Circular
A-122 is applicable, subject to any limitations in part A of this section.
Copies of this document may be provided by either party to other Federal agencies
which have or intend to issue or award agreements using these rates, or to
otherwise provide such agencies with documentary notice of this agreement and
its terms and conditions.
D. PROVISIONAL RATES: The provisional rates contained in this agreement are
subject to unilateral amendment by the Government or bilateral amendment by the
contracting parties at any time.
E. SPECIAL REMARKS:
1. The Government’s agreement with the rates and factors set forth in
Section I is not an acceptance of the National Academy of Sciences’ (NAS)
accounting system, cost classifications, allocation methodologies, cost analysis
studies and proposed accounting changes included in NAS’ October 10, 2003 FY 2003
forward pricing proposal, supporting data, and Disclosure Statement Revision
No. 14 submitted October 16, 2003, effective January 1, 2003. Any reliance by
the Government on cost data or methodologies submitted by NAS is on a
non-precedence-setting basis and does not imply Government acceptance. The
parties will continue to address any differences regarding accounting systems,
cost classifications, allocation methodologies, cost analysis studies, and
proposed accounting changes, as well as resolve any cost impact adjustments, as
necessary. The parties will attempt to resolve these differences before
finalization of FY2003 actual costs.
2. The Rates and COM factors included in Section I are not applicable to
Intergovernmental Personnel Act (IPA) costs, except for leave and Fringe Benefit
rates. If the National Academy of Sciences elects to seek reimbursement of
indirect costs associated with IPA agreements, the NAS and the Office of Naval
Research shall establish a special indirect cost rate for IPA agreements in
accordance with the provisions of OMB Circular A-122 and Cost Accounting
Standards.
FOR THE FOR THE U.S. GOVERNMENT
NATIONAL ACADEMY OF SCIENCES
/s/ Archie L. Turner_______________ /s/ Deborah K. Rafi__________
ARCHIE L. TURNER DEBORAH K. RAFI
Chief Financial Officer Contracting Officer
December 6, 2004 December 6, 2004
Date Date
For information concerning this document contact:
Joanne Elkowich
Office of Naval Research
Indirect Costs/ONR 0242
800 N. Quincy Street
Arlington, VA 22217
(703) 696-7742
E-mail: elkowij@onr.navy.mil