Texas Tech University

Budgeting Subcontracts

For budgeting purposes, the subcontract (or subgrant) should be identified in the proposal budget as a separate line item. The item should be noted and a cost breakdown for the subcontract should be referenced as an attachment to the main proposal budget. The subcontract budget should reflect all appropriate direct and indirect (F&A - Facilities and Administrative Costs) costs. (Educational institutions should include F&A costs at their current federally negotiated rates.) Subcontract budgets must be approved by appropriate officials of the proposed subcontractors preferably before the proposal is submitted.

  • The first $25,000 of EACH subcontract in your proposed budget will be included in the Modified Total Direct Cost (MTDC) base used for calculating F&A cost.
  • TTU will not limit the F&A recovery by the subcontractor unless required to do so by the agency (which most will not do).

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