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Cost / Price Analysis
This information is required to ensure that appropriate documentation is obtained to support the proposed budget of the Subcontractor/Vendor.
This supporting documentation is required in accordance with Federal regulations for each and every budget category proposed by the Subcontractor/Vendor under a Federally-Sponsored Contract. Below is a listing of the most common budget categories and the justification required to support a cost/price analysis.
Failure to provide complete information will delay issuance of the Subcontract or Hybrid PO.
Simply re-stating a budget in detail is not sufficient.
If the project is funded under a federal contract, then additional Cost/Price Analysis information is needed
Cost/Price Analysis for Federal Contracts
If the project is funded under a federal contract, then the additional Cost/Price Analysis information outlined below also needs to be provided.
Upload a completed cost/price analysis document for the subcontract in eResearch Proposal Management. (This does not apply to projects funded under federal grants, cooperative agreements, or non-federal projects.)
The following information is required (additional details below):
- Fringe Benefits
- Materials and Supplies
- Other Direct Costs
- Profit or Fee
- Indirect Costs or Overhead
Upload the completed cost/price analysis document for the subcontract in eResearch Proposal Management.
Details on Information Required
- Salaries/Wages: Attach supporting documentation of the individual's actual base rate. If the proposed rate includes an escalation factor, identify that factor and attach the subcontractor's justification for its inclusion. Attach the subcontractor's justification for direct charging of administrative or clerical personnel. Supporting documentation for salaries and wages may include copies of payroll forms or reports. If such documentation is not available, the following certification signed by an authorized representative of the subcontractor/vendor will be required: "The salary and wage information provided is true and correct and represents the current and actual base rate of each individual proposed."
- Fringe Benefits: Attach supporting documentation for fringe benefits. Supporting documentation for fringe benefits may include a copy of the federally-negotiated fringe benefit rate agreement or a copy of the published rates. If such documentation is not available, the following certification signed by an authorized representative of the subcontractor/vendor will be required: "The fringe benefit information provided is true and correct and represents the current and actual fringe benefits of each individual proposed."
- Consultants: Identify the name, rate and number of hours/days for each Consultant. Determine that the purpose and costs are appropriate. Attach supporting documentation for the rates used. Attach written justification for rates exceeding the federally-authorized rate. Supporting documentation for Consultant rates may include a copy of the Consultant's published rates, or a statement signed by the Consultant indicating that the rate charged is the same as normally charged to others for the services provided.
- Travel: For each trip, provide the cost elements proposed for airfare, rental car, hotel, per diem, etc., as well as the purpose of the trip. Attach supporting documentation for each cost element such as published quotes for airfare, rental car, and hotel as well as a copy of the Subcontractor's/Vendor's current travel policy and procedures if available.
- Materials and Supplies: Attach supporting documentation for items with unit costs of $500 or more. Attach justification for direct charge items such as office supplies, postage, local telephone costs, and memberships that are normally treated as indirect costs. Supporting documentation for materials and supplies with unit costs exceeding $500 may include copies of published catalog prices or copies of previous expense vouchers.
- Other Direct Costs: Examples are computing services or time, communications, student fees, etc. Attach supporting documentation for rates and costs used
- Equipment: Equipment means an article of nonexpendable, tangible, personal property having a useful life of more than two years and an acquisition cost that equals or exceeds $1000. Attach supporting documentation for each item. Supporting documentation for equipment may include copies of published catalog prices, vendor quotes, or copies of previous expense vouchers.
- Profit or Fee: Please explain/justify and attach supporting documentation as to why profit or fee is reasonable.
- Indirect Costs or Overhead: Attach a copy of the Subcontractor's/Vendor's Federally-negotiated Indirect Cost Rate Agreement. If the Subcontractor/Vendor does not have a rate agreement, sufficient information should be attached indicating how the rate used was determined and, if the rate was accepted and paid previously by a Federal agency, documentation to that effect should be provided.
Office of Contract Administration
The University of Michigan
5000 Wolverine Tower
3003 South State Street
Ann Arbor, MI 48109-1273
Fax: (734) 647-1932
Manager: Peter J. Gerard (734) 763-3194 or email@example.com