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Budget Narrative for 2021

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Budget Narrative for 2021
The Woods Hole Oceanographic Institution (WHOI) is a non-profit [501(c)(3)] research and education organization subject to the cost principles of 2 CFR 200. WHOI Principal Investigators are responsible for conceiving, funding and carrying out their research programs.  Senior Personnel are expected to raise 12 months of support per calendar year for themselves and their staff by writing proposals and obtaining sponsored research grants and contracts from a variety of sources. Some teach voluntarily in WHOI’s Joint Program, but support for this is limited.  NSF has confirmed to WHOI that salary support from grants beyond 2 months per calendar year can be justifiable for these Principal Investigators.

The rates included in the proposal are negotiated with our cognizant government agency.

WHOI has an annually negotiated rate agreement with the Office of Naval Research and uses the method of allocation of indirect costs to Modified Total Direct Costs (MTDC). The normal exclusions contained in 2 CFR 200.68 (MTDC) apply, as well as the following cost categories; ship use, submersible use, vessel charters and ship fuel.

A proposed labor month is equal to 152 hours or 1824 hours annually versus 2080 hours (40 hours/week for 52 weeks). The difference is for vacations, holidays, sick time, and other paid absences, which are included in the Paid Absences calculation.   WHOI cannot “waive” or reduce overhead rates on any sponsored research project due to the structure of our negotiated rates with our cognizant government agency (Office of Naval Research).  When a program sets limits on overhead, WHOI must use Institution unrestricted funds to pay the unfunded portion of the overhead costs.

Employee benefits have been proposed using composite weighted average rates that are the total assignable to salaries of regular employees including paid absences, excluding Graduate Research Assistants, overtime salaries & allotted paid leave benefits. The period composite rates are weighted averages of the specific rates for each fiscal year in accordance with WHOI’s 2021 provisional rate agreement (dated 12/30/2020) and 2019 Provisional Forward Pricing Letter (dated 2/12/2019) with the Office of Naval Research.

Foreign Contracts, Proposals and Agreements

Before submission to GCS all WHOI proposals, contracts, agreements, and awards with foreign agencies/vendors should stipulate that payment is in US dollars.

WORDING to include in the Budget Justification.  "All payments will be in US dollars."

Remember: Foreign proposals should have a fee in the budget.  See Fee Policy on the Director of Research's website

Corporate Sponsored Research Submissions

Submissions to Funding Agencies 'Foreign Entities' (18) and 'Non-Government Other' (16 - also known as 'Non-Government Contracts, POs, Subs (Non-Govt Prime)) require review by the Office of Technology Transfer before the Submission is routed to GCS. .

The appropriate statement from the list below must be included in the Budget Justification. In addition, the internal abstract in WHOIgrants must have the same statement included at the bottom of the abstract..

Corporate Sponsored Research Budget Justification/WHOIgrants (internal) abstract. Select the statement that applies to the specific submission.

  1. Any intellectual property arising from this research will be owned by WHOI and will be subject to a non-exclusive license from WHOI to sponsor.
  2. Any intellectual property arising from this research will be owned by WHOI and will be subject to an exclusive license from WHOI to sponsor.
  3. This project is work for hire without contractual provisions for intellectual property.

Loan Agreement

When you are preparing a proposal that is going to lend equipment to another organization and the PI expects to have that equipment returned (or replaced) at the end of the period of performance, a Loan Agreement should be included as part of the proposal.  In addition, part of the "letter" or proposal text should state that it is required that the Loan Agreement be signed by an Authorized Official of the organization (Borrower) and returned with the subaward or purchase order.  The Word file includes in red an example of how the Agreement should be completed before inclusion in the proposal.

Justification for Fee in Proposal:

The following statement may be included in the Budget Justification or Budget Discussion for a proposal that includes a Fee.

The Woods Hole Oceanographic Institution is authorized to charge fees in accordance with existing government regulations. The Institution requests fees on both contracts and subcontracts. The fees are considered unrestricted funds and are utilized by the Institution Director and the Director of Research in the pursuit of science and engineering. These funds are used for cost sharing for instrumentation, for proof of concept research and development and a wide variety of other research related activities.

Last updated: January 5, 2021

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