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dation shall include in such computation an 

 amount equal to the reasonable value of any 

 buildings, facilities, equipment, supplies or serv- 

 ices provided by such participant with respect 

 to such program (but not the cost or value of 

 land or of Federal contributions]." The total cost 

 of such program includes the sum of the allowf- 

 able direct costs incident to performance, plus 

 the allocable portion of the allowable indirect 

 costs of the participant, less applicable credits. 

 Allowability and allocability of costs will be 

 determined in accordance with Bureau of the 

 Budget Circular No. A-21 (Revised) for educa- 

 tional institutions, or Subpart 1-15.2 of the Fed- 

 eral Procurement Regulations for other than 

 educational institutions. In determining the "rea- 

 sonable value of any buildings, facilities, equip- 

 ment, supplies or services provided," the follow- 

 ing criteria apply. 



For buildings and facilities, allowable costs of 

 educational institutions may be based upon a 

 reasonable use charge, taking into account the 

 proportionate use of the building or facility for 

 Sea Grant purposes, in accordance with BOB 

 Circular No. A-21 (Revised). For permanent 

 equipment, allowable costs likewise may be 

 based upon a reasonable use charge in accord- 

 ance with BOB Circular No. A-21 (Revised); 

 accordingly, the cost of permanent equipment 

 purchased with the institution's own funds may 

 not be charged to the project as a direct cost 

 at the time of acquisition. Permanent equipment 

 is defined as equipment having a useful life 

 in excess of one year and acquisition cost of 

 $500 or more, unless the institution's established 

 policy for capitalizing equipment provides for a 

 different dollar amount. Equipment necessary to 

 a Sea Grant activity may be purchased with 

 grant funds subject to prior approval by the 

 Foundation. In unusual cases involving equip- 

 ment, the Foundation is prepared to consult with 

 the institution on the best procedures to be 

 followed. If buildings, facilities, or permanent 

 equipment were acquired in whole or in part 

 with Federal funds, the use charges must be 

 reduced in proportion to the Federal contribu- 

 tion. The costs of expendable equipment (having 

 a useful life of one year or less) and supplies 

 required for performance of the project are al- 

 lowable either as direct costs or indirect costs, 

 in accordance with consistently applied prin- 

 ciples of accounting. The kinds of services may 

 include, but are not limited to, such items as 

 personal services, professional services, travel. 



insurance and indemnification, recruitment, and 

 communications. The cost of services required 

 for the performance of the project are allowable 

 as either direct costs or indirect costs, in accord- 

 ance with consistently applied principles of 

 accounting. 



Cost-sharing requirements for these programs 

 may be satisfied by the recipient institution with 

 a contribution from any source other than the 

 Federal Government to any of the cost elements 

 of the project, direct or indirect. 



Since it will be necessary to demonstrate that 

 cost sharing is fulfilled, institutions must main- 

 tain accounting records which will establish 

 their contributions. Records must be maintained 

 to show, as required by the Act, that charges 

 to the Foundation grant or contract in any fiscal 

 year did not exceed 66-/3 percent of the total 

 cost of the program in that fiscal year. If the 

 expenditures are less than originally contem- 

 plated, the relationship between the institution's 

 contribution and the total cost should remain 

 essentially the same as proposed in the approved 

 application or in a subsequent approved revision. 



8. Restrictions on Grant Fund Use. Sea Grant 

 funds contributed by the Federal government 

 may not be applied to the purchase or rental 

 of any land, or the rental, purchase, construction, 

 preservation, or repair of any building, vessel, 

 or dock. This restriction does not, of course, 

 apply to the use charges assignable as part of 

 the grantee contribution. 



9. Principal NSF Regulations and Procedures. 

 The principal Foundation regulations and pro- 

 cedures applicable to the National Sea Grant 

 Program are summarized below for convenience 

 in preparing proposals. Institutions and organ- 

 izations with previous experience in obtaining 

 and administering Foundation grants and con- 

 tracts already will be familiar with NSF require- 

 ments; those preparing proposals to the Founda- 

 tion for the first time are urged to familiarize 

 themselves with the standard regulations and 

 procedures described in NSF 63-27, "Grants for 

 Scientific Research," and by direct consultation 

 with the Foundation should questions arise. 



(a) Current support and pending applications 

 — The Foundation must be informed of the total 

 research effort of each principal investigator or 

 program manager listed in the proposal. Infor- 

 mation concerning aU of the public and private, 

 current and anticipated support of the principal 

 investigator or program manager and other sen- 

 ior personnel participating in the proposed ac- 



