BRIEF

Policy Summary

This policy provides guidelines for accounting for the cost of compensation above the allowable limits for Sponsored Research agreements at Lawrence Berkeley National Laboratory (Berkeley Lab). Compensation for researchers working on Sponsored Research agreements may be subject to limitations by federal law or provisions in specific Sponsored Research agreements. Most commonly, compensation limits apply to all Department of Health and Human Services agencies, such as the National Institutes of Health, Centers for Disease Control and Prevention, and Food and Drug Administration. The cost of salaries and wages in excess of the limitations are unallowable under the University of California-Department of Energy Prime Contract (Contract 31) and must be covered by non-federal funds.

Who Should Read This Policy

All employees with financial responsibilities for Sponsored Research agreements

To Read the Full Policy, Go To:

The POLICY tab on this wiki page

Contact Information

Reimbursable Group Manager

POLICY

A. Purpose

The policy provides guidelines for accounting for the cost of compensation above the allowable contractual limits for Sponsored Research agreements at Lawrence Berkeley National Laboratory (Berkeley Lab).

B. Persons Affected

All employees with financial responsibilities for Sponsored Research agreements

C. Exceptions

None

D. Policy Statement

1. General
   1. Under the terms of its prime contract, Berkeley Lab may perform Strategic Partnership Projects (SPP) for non-Department of Energy (DOE) sponsors pursuant to the Economy Act of 1932, as amended (31 USC 1535) and the Atomic Energy Act of 1954.
   2. Work performed for non-DOE sponsors must be performed on a full cost recovery basis.
   3. The cost of salaries and wages in excess of the limitations are unallowable under the University of California (UC) – DOE Prime Contract (Contract 31) and must be covered by non-federal funds.
2. Compensation Limits
   1. Compensation for researchers working on Sponsored Research agreements may be subject to limitations under federal law or other terms and provisions of the agreement. Certain Sponsored Research and Interlocation Appointment (ILA) agreements contain such limitations.
      1. Compensation limits typically apply to all Department of Health and Human Services agencies, such as the National Institutes of Health (NIH), Centers for Disease Control and Prevention, and Food and Drug Administration.
      2. Compensation limits can also apply to non-federal sponsors, but such agreements are rare.
   2. The cost of salaries and wages in excess of these contractual limitations must be covered by unrestricted or other non-federal funds in order to ensure full cost recovery. Unrestricted or non-federal funds used for this unique purpose include external CSR and UC fee funds.
   3. Divisions must use the Directorate's Request for LBNL to Share Cost on a DOE or Non-DOE Sponsored-Research Funded Project at Time of Proposal form to identify the appropriate source of non-federal funds to cover the over-limit compensation costs before submission of a proposal that contains a compensation limit.
   4. Berkeley Lab must ensure that any compensation above the prescribed limits is identified and excluded from final billings, claims, or proposals.

E. Roles and Responsibilities

F. Definitions/Acronyms

G. Recordkeeping Requirements

None

H. Implementing Documents

None

I. Contact Information

Reimbursable Group Manager, OCFO

J. Revision History

DOCUMENT INFORMATION

Source Requirements Documents

NIH Guide – Salary Cap Summary (FY 1990 – present)
DOE Order 522.1A, Pricing of Departmental Materials and Services

Implementing Documents

None

Other References