I. General Comments

These guidelines apply to all proposals and funding other than direct proposals and funding from the National Science Foundation (NSF), including proposals for non- NSF funds (including new work, continuations and modifications) to be received via the NSF Cooperative Agreement.

II. Definitions

Management Fee: A fixed amount calculated as a percentage of projected MTDC plus Applied Entity G&A costs.

MTDC (Modified Total Direct Cost):

Total cost less the following:

1. Cost of equipment purchases.
2. Participant Support Costs.
3. Amounts in excess of $25,000 of annual expenditures per account key on a purchase order or sub-contract.
4. Facility chargebacks that include overhead.

Government and/or Non-Profit Organizations: For purposes of these guidelines all Federal, state, and local governments, universities and colleges, regardless of national orgin, are considered to be a government or non-profit organization. (If there is uncertainty as to the nonprofit status of any other organizations to whom a fee would apply, documentation should be provided by the organization. For example, proof of nonprofit status can be determined through receipt of a copy of an organization's formal documentation from the IRS recognizing their 501 tax exempt status.)

III. Special Notes/Requirements

A. UCAR collects a management fee on all contracts, grants, and agreements. The fee allows UCAR to cover certain ongoing corporate expenses as provided for in GAO recommended guidelines. Net proceeds are used to help maintain and expand UCAR's scientific and educational programs. In general, the fee represents contributions to UCAR's general fund to cover expenses necessary for UCAR corporate operations that are not budgeted for in contracts, grants, or agreements. Management fee will be collected upon acceptance of the award based upon the fixed amount approved by the funding agency.  Collection of the fee at acceptance of the award assists UCAR in managing their cash effectively.

B. If a sponsor refuses to pay the Management Fee or wants to negotiate the amount of fee, the matter should be referred to the UCAR Contracts Office.

A. Proposing Management Fee

Management Fee should be included as a separate line item on all applicable proposals. The proposed Management Fee is calculated as follows:
 

% of (Budgeted MTDC + Applied Entity G&A)

Where the percentage (%) applied is 3% for all agreements with Government and/or Non-Profit Organizations, and 5% for all agreements with all other organizations, regardless of funding origination.

B. Collecting Management Fee

Management fee collection will occur at the beginning of each fiscal year or upon acceptance of the award  that the fee is applicable.  The fee calculation will divide the fee budget by the number of months in the budget period and multiply it by the number of months the budget period covers in the current fiscal year.  Future fiscal years fee budgets will be encumbered.

C. Exception to Management Fee

Management Fee will be applied to all non-NSF programs unless a formal exception is granted by the President of UCAR. Exceptions to the application of Management Fee are minimal and limited to unique situations. Following are the procedures for requesting an exception to the application of Management Fee:

1. UOP program administrators will submit a written request through their program management to the UOP Director.


NCAR division administrators will submit a written request through their Division Director, through the NCAR Budget and Planning Office, to the Director of NCAR. The request must include a copy of the budget submitted to the sponsor and any other information that explains and justifies the need for an exception to the application of Management Fee.

Other UCAR entity administrators will submit a written request through their program management to their entity director.

2. The Director of NCAR, the Director of UOP, or other entity director, as appropriate, will forward the request to the Assistant Treasurer with their recommendation for approval.
3. Upon receipt, the Assistant Treasurer will verify the status of the request with the appropriate sponsor contact, or other sources as deemed appropriate, and forward her or his recommendation for approval to the President of UCAR through the Vice President for Finance and Administration.
4. If approved, the Assistant Treasurer will forward a copy of the approved request to the cognizant administrator, NCAR B&P, UOP, the UCAR Contracts Office and others, as appropriate.
5. The Assistant Treasurer will maintain records of all authorized exceptions to the application of Management Fee.