The Code of Federal Regulations of the United States of America

§ 15.712-4 Insurance and indemnifica

tion.

(a) Costs of insurance required, or approved and maintained pursuant to the grant agreement, are allowable.

(b) Costs of other insurance in connection with the general conduct of activities are allowable subject to the following limitations:

(1) Types and extent and cost of coverage will be in accordance with general State or local government policy and sound business practice.

(2) Costs of insurance or of contributions to any reserve covering the risk of loss of, or damage to, Federal Government property are unallowable except to the extent that the grantor agency has specifically required or approved such costs.

(c) Contributions to a reserve for a self-insurance program approved by the Federal grantor agency are allowabie to he extent that the type of coverage, extent of coverage, and the rates and premiums would have been allowed had insurance been purchased to cover the risks.

(d) Actual losses which could have been covered by permissible insurance (through an approved self-insurance program or otherwise) are unallowable unless expressly provided for in the grant agreement. However, costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sound management practice, and minor losses not covered by insurance, such as spoilage, breakage, and disappearance of small hand tools which occur in the ordinary course of operations, are allowable.

(e) Indemnification includes securing the grantee against liabilities to third persons and other losses not compensated by insurance or otherwise. The Government is obligated to indemnify the grantee only to the extent expressly provided for in the grant agreement, except as provided in paragraph (d) of this section.

§ 15.712-5 Management studies.

The cost of management studies to improve the effectiveness and efficiency of grant management for on-going programs is allowable except that the cost of studies performed by agencies other than the grantee department or outside consultants is allowable only when authorized by the Federal grantor agency.

§ 15.712-6 Preagreement costs.

Costs incurred prior to the effective date of the grant or contract, whether or not they would have been allowable thereunder if incurred after such date, are allowable when specifically provided for in the grant agreement.

§ 15.712-7 Professional services.

Cost of professional services rendered by individuals or organizations not a part of the grantee department is allowable subject to such prior authorization as may be required by the Federal grantor agency.

§ 15.712-8 Proposal costs.

Costs of preparing proposals on potential Federal Government grant agreements are allowable when specifically provided for in the grant agreement. § 15.713 Unallowable costs.

pants, professional or technical services to cooperating countries, the development and introduction of new or expanded courses, and similar instructional oriented undertakings, including special research training programs, that are separately budgeted and accounted for by the institution. The term does not extend to (a) grants or contracts for organized research, (b) arrangements under which the Federal financing is exclusively in the form of scholarships, fellowships, traineeships, or other fixed amounts such as a cost of education allowance or the normal published tuition rates and fees of an institution, or (c) construction, facility, and exclusively general resource or institutional type grants.

§ 15.803-2 Instruction.

This term means all of the academic work other than organized research carried on by an institution, including the teaching of graduate and undergraduate courses, departmental research (see § 15.302-2) and all special training or other instructional oriented projects sponsored by the Federal Government or others under educational service agreements.

§ 15.804 Student administration

services.

and

In addition to the five major functional categories of indirect costs described in § 15.306, there is established an additional category under the title "Student administration and services" to embrace the following:

§ 15.804-1

Administration and services.

The expenses in this category are those that have been incurred for the administration of student affairs and for services to students, including expenses of such activities as deans of students, admissions, registrar, counseling and placement services, student advisers, student health and infirmary services, catalogs, and commencements and convocations. The salaries of members of the academic staff whose academic appointments or assignments require the performance of such administrative or service work may also be included to the extent that the portion so charged is supported pursuant to § 15.809-2. The student administration and services category also includes the staff benefits and pension plan costs applicable to the salaries and wages included therein, an appropriate share of

The expenses in this category are generally applicable in their entirety to the instruction activity. They should be allocated to applicable cost objectives within the instruction activity, including educational service agreements, when such agreements reasonably benefit from these expenses. Such expenses should be allocated on the basis of population served (computed on the basis of full-time equivalents including students, faculty, and others as appropriate) or other methods which will result in an equitable distribution to cost objectives in relation to the benefits received and be consistent with guides provided in § 15.305-2.

§ 15.805 Direct costs of educational service agreements.

Direct costs of work performed under educational service agreements will be determined consistent with the principles set forth in § 15.304.

§ 15.806 Indirect costs of the instruction activity.

The indirect costs of the instruction activity as a whole should include its allocated share of administrative and supportive costs determined in accordance with the principles set forth in § 15.804 and in § 15.306. Such costs may include other items of indirect cost incurred solely for the instruction activity and not included in the general allocation of the various categories of indirect expenses.

§ 15.807 Indirect costs applicable to educational service agreements.

The individual items of indirect costs applicable to the instruction activity as a whole should be assigned to (a) educational service agreements, and (b) all other instructional work through use of appropriate cost groupings, selected distribution bases, and other reasonable methods as outlined in § 15.305-2. A single indirect pool may be used for all educational service agreements provided this results in a reasonably equitable distribution of costs among agreements in

relation to indirect support services provided. However, when the level of indirect support significantly varies for work performed either on campus or off campus under a particular agreement or group of agreements, separate cost pools should be established consistent with the principles set forth in § 15.307-1(b). Where direct charges are provided for under educational service agreements for such things as commencement fees, student fees, and tuition, the related indirect costs, through separate cost groupings, should be excluded from the indirect costs allocable to the service agreements.

§ 15.808 Indirect cost rates for educational service agreements.

An indirect costs rate should be determined for the educational service agreement pool or pools, as established under § 15.807. The rate in each case should be stated as the percentage which the amount of the particular educational service agreement pool is of the total direct salaries and wages of all educational service agreements identified with such pool. Indirect costs should be distributed to individual agreements by applying the rate or rates established to direct salaries and wages for each agreement.

§ 15.809 General standards for selected items of cost.

The standards for selected items of cost as set forth in §15.309-1 through § 15.309-46 applicable to research agreements will also be applied to educational service agreements with the following modifications:

the professorial category, will be documented and supported consistent with the provisions of § 15.309-7 for nonprofessorial professional staff members (the provision for stipulated salary support will not be used for educational service agreements); and (b) charges may include compensation in excess of the base salary of a faculty member for the conduct of courses outside the regularly established work schedule of such member providing: (1) Extra charges are determined at a rate not greater than the basic salary rate of the member; (2) salary payments for such work follow practices consistently applied within the institution; and (3) specific authorization for such charges is included in the educational service agreement. § 15.809-3 Scholarships and student aid costs (§ 15.309–35). Expenses incurred for scholarships and student aid are unallowable as either direct costs or indirect costs of educational service agreements, unless specifically authorized in the educational service agreement or approved in writing by the sponsoring agency.

Amendment of Solicitation/Modification of Contract (Standard Form 30).

16.104-5 Request for Quotations (Standard Form 18).

Subpart B-Forms for Negotiated Procurement Scope of subpart.

16.200

services

costs

Expenses incurred for student services are unallowable as direct costs of educational service agreements unless specifically authorized in the agreement or approved in writing by the sponsoring agency. For eligibility of allocation as indirect costs, see § 15.804.

PART 16-PROCUREMENT FORMS

Sec.

16.000 Scope of part.

Procedures.