Guidelines for Budgeting for Genomic Arrays for NIH Grants, Cooperative
Agreements and Contracts: NOT-OD-10-097

NIH released the above-referenced notice in May, 2010, that provides
guidance on a change in costing principles and procedures for external
genomic array purchases budgeted and charged to NIH proposals and
awards. Essentially, NIH has placed a cap on indirect cost assessment
for external genomic array purchases. NIH’s rationale for the change in
policy is as follows: “In recent years while the cost of these tools
(genomic arrays) has been significantly reduced, the current awards
being approved often require large volumes of these consumables which
have become an increasingly significant component of the funds awarded
by NIH and reimbursed for these research projects. The treatment of the
costs for purchase of genomic arrays as “supplies” in these specialized
award budgets at high levels of usage would result in the application of
F & A cost recovery that is disproportionate to the actual
administrative burden associated with the relatively high cost of the
procurement of these genomic arrays.”

Under the new policy, institutions may assess indirect cost on the first
$75,000 of external genomic arrays purchases per budget year. Any funds
expended in excess of $75,000 for that budget year will be exempt from
indirect cost assessment. This new policy has been included in UCI’s
Indirect Cost Rate agreement dated April 27, 2011:
http://www.ucop.edu/costingpolicy/rates-new.html.

Procedures for budgeting external genomic array purchases in NIH
proposals may be found in the attached document.

Should you have any questions regarding this new policy or these
procedures, please contact the appropriate Sponsored Projects Officer or
Rebecca Tangen in Contract and Grant Accounting at rtangen@uci.edu.

default iconGenomic array policy announcement.pdf