Foreign Contracts, Proposals and Agreements - Currency Guidelines
- ALL contracts, proposals, agreements should be sent to GCS before submission to agency.
- Foreign proposal should have a fee in the budget.
Guildlines for Submissions and Existing Awards
(1) Before submission to GCS all WHOI proposals, contracts, agreements, and awards with foreign agencies/vendors should stipulate that payment is in US dollars.
WORDING. “All payments will be in US dollars.”
(2) If the vendor/agency refuses, the contract and award should stipulate that if foreign currency fluctuations decrease the value of US dollars, payment in foreign currency should be equivalent to the US dollars contractual price.
WORDING: “All payments should be in US dollars or the US dollar equivalent at the time of payment.”
- Determine on a case-by case basis whether PIs are allowed to take contracts with foreign currency unless either (1) or (2) are agreed to by the foreign vendor/agency.
- For existing (or future) contracts to be paid in foreign currency, the cost of conversion and any losses due to currency fluctuations at the time of payment will be deducted from the fee that the contract earns. This may reduce the fee rebate a PI receives. For a multi-year award or contract, the fee rebate will be withheld until the end of the contract/ award when costs of foreign payment are applied to the earned fee.
- PI Discretionary accounts or the Department are responsible for costs not covered by the fee.
- Because a contract specifies the scope of work, a PI cannot reduce the work to adjust for differences in currency fluctuation.
- Exceptions to these guildlines may be made at the discretion of the Directorate.
Last updated: January 14, 2014