Building a Successful Cost Proposal

1. Building a Successful Cost Proposal Post Doc Workshop February 12, 2019

2. Agenda • Introduction • Understanding the Environment • Proposal Consideration • Proposal Workflow • Questions

3. Introduction • Why is this important? • Diversify funding pool • Expose your research to sponsors • Encourage collaboration • Focus on federal funding- but the building blocks will apply to all cost proposals

4. Understanding the Environment Federal Requirements Agency Funding Opportunity

5. Understanding the Environment Funding Agencies Funding Opportunities

6. Federal Requirements • Uniform Guidance outlines cost principles relevant to proposals: • Allowable? • Reasonable? • Allocable?

7. Allowable • Consistently Treated- Similar costs must be treated the same in like circumstances, as either direct or indirect (CFR 200.403(d)) • Reasonable- A prudent business person would have purchased this and paid this price (CFR 200.404) • Allocable- It can be assigned to the activity under the award (CFR 200.405)

8. Reasonable • The cost “does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was make to incur the cost.”(CFR 200.414)

9. Allocable • Incurred for the project • Proportionally distributed • Necessary for the overall operation of the project

10. Examples of Unallowable Costs • Personnel (e.g., salary caps) • Travel: non-economy airfare • Contractors/Subawards: experience, justification

11. Quick Quiz • What are the 3 categories to determine if a cost is acceptable?

12. Proposal Considerations Funding Opportunity Regulatory Considerations Budget

13. Activity: Review Funding opportunity READ and LOVE your funding opportunity announcement • Who and Why? • Agency (e.g., NSF, DOE, NIH) • Purpose • What and How? • Eligibility & other specifics (e.g., cost share/matching, terms and conditions) • Due Date & budget ceiling • Submission method

14. Elements of your Proposal • Title & Research Abstract • Proposal Narrative (specific aims, expected outcomes, methods) • Biosketch • Budget & Budget Justification • Literature Cited • Subrecipient Documents • Other (e.g., Commitment Letter)

15. Regulatory Considerations • Intellectual Property • Authorship/Publication • Responsible Conduct of Research

16. Preparing Your Budget • Salary & Fringe • Equipment • Travel • Participant Support • Subawards • Other Direct cost • Indirect Cost • Documentation (e.g., equipment pricing)

17. Budget Consideration • Prior approval requirements • Equipment, subawards, etc. • Cost share (if required) • Required? • Tracking appropriately • Multi-year budgets (complex and time consuming) • Inclusion of inflation & merit increases • Itemized annual budget & cumulative summary

18. Salary/Personnel Salary considerations: • Name/Position • Salary • % Effort

19. Fringe Benefits Components: • Health care • Employer taxes • Workers compensation • Unemployment & life insurance • Retirement contributions Current Benefit Rates for Carnegie: • Employee - 33% • Post-Docs – 15% • Fellows – 7.3%

20. Equipment Definition • Acquisition cost of = or > $5,000 • Useful life > 1 year • Includes shipping and setup costs • Aggregate cost = $5,000 or more • Component A costs $3,000 and • Component B costs $2,500 • Need A & B for functionality? Capital Equipment • A or B can be used alone? Supplies

21. Travel What to consider: • Domestic vs. Foreign • Estimate lodging using per diem rates(GSA site) • Actual must not exceed per diem • Lowest coach fare and Fly America Act • Upgrade for extra legroom in coach unallowable (per UG) • Other: Auto rental, mileage reimbursement, tolls, parking, taxi

22. Participant Support • Costs Elements: • Stipends • Travel • Subsistence • Other (materials & supply, conference registration, tuition) • Funding purpose (outreach, to augment exposure to research)

23. Subawards or Vendor Funds provided to 3rd party (subaward or vendor) • Subaward vs. vendor classification

24. Other Direct Costs Types of Costs • Materials and supplies (special computing laptop) • Cost <$5,000 per item and used for project • Itemize • Publication costs (graphic design, photography) • Consultant services • Individual/entity providing specialized services • Consider consulting rate (itemize costs: materials, etc.) • Fees must be customary for the type of service

25. Indirect Costs: Definition Allocation of administrative costs that are not charged directly to the award but that are required for implementation of award • Indirect Costs Includes: • Administrative Support Staff • Utilities • Supplies • Building Costs

26. Indirect Costs Calculation Modified Total Direct Costs Total Direct Costs less: • Fellowship and Participant costs • Capital equipment of $5,000 or more • Portion of each subaward in excess of $25,000 • Other costs excluded per grant terms Total Indirect Costs Total Direct Cost Base (MTDC) Indirect Cost Rate 61.53%

27. Budget Justification • Salary: name, position, purpose • Fringe: benefit components & rates • Equipment: description, purpose, cost/pricing basis • Travel: who, where, when, purpose & detailed cost • Participant Support: who, travel, other expenses (e.g., stipend) • Subawards: purpose, cost (individual detailed budget & justification) • Other Direct cost: detailed cost per item, unit cost & purpose • Indirect Cost: Carnegie’s negotiated rate & cognizant agency

28. Proposal Workflow

29. Questions?

30. Helpful Links • Uniform Guidance: • Uniform Administrative Requirements for Federal Awards (Cost Principles, Audit Requirements) • NSF Guidance: • Proposal & Award Policies & Procedures Guide (PAPPG), January 2019 • NASA Guidance: • Grant & Cooperative Agreement Handbook • Revisions per 2 CFR 200 • DOE Guidance: • Grant Policy Guidance • GSA • GSA Per diem Rates Lookup