PSC Partners' Policy on Indirect Costs for Contracted Projects

PSC Partners Seeking a Cure (PSC Partners) participates in both research seed grant awards and contracted projects with grantee organizations. However, while indirect costs reimbursement is NOT acceptable as part of the budget for research seed grants to grantee organizations, it is acceptable and may be given in contracted projects with grantee organizations. The budget and operation of a contracted project may produce legitimate indirect costs and expenses that PSC Partners Seeking a Cure will support, including but not limited to costs and expenses relating to:

• Administration, human resources
• Consultants, subcontractors
• Project facilities
• Equipment
• Insurance, bank fees, interest expense
• Staff training and professional development
• Fiscal sponsor fees
• Legal
• Information technology

For contracted projects, grantee organization applicants may request support for indirect costs for contracted work in accordance with the following criteria:

• Non-profit organizations and non-U.S. universities may request up to 15% indirect costs for the project award.
• For-profit organizations and government entities may not receive indirect costs funding for project awards.
• Grantee organizations that are U.S. colleges/universities, hospitals, or health systems may request up to 10% indirect costs for the project, excluding budget items for capital or endowment purposes and the limitations on equipment and subcontractors below:
  • Applicants may request only up to 10% indirect costs for the first $25,000 ($2,500 maximum) of equipment purchases for the selected institution.
  • Applicants may request up to 10% indirect costs only of the first $25,000 ($2,500 maximum) for each subcontractor annually for the selected institution.

This policy does not require contracted entities to substantiate their indirect cost rate, and a 10% indirect cost reimbursement is usually in accordance with market standards. However, PSC Partners reserves the right to negotiate lower or no indirect costs with any institution. For example, a grantee organization may propose 10% indirect costs reimbursement, and PSC Partners may ask the grantee organization to lower the indirect costs request to 8%.