Question: OFRN R7 Solicitation: Modified Total Direct Cost (MTDC): All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subcontract (regardless of the period of performance of the subcontract under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subcontract in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.
Does this mean that our university partner cannot charge above $25,000 for this area? If so, is that by year?
Response:
MTDC is that the indirects are applied to the first $25,000 in expenses of each subcontract for the referenced items. The university partner can only charge indirects on the first $25,000 of expenses.