a.  In accordance with the applicable cost principles cited below, the allowable costs of this grant shall consist of the actual allowable direct costs incident to performance of the project, plus the allocable portion of the allowable indirect costs, if any, of the organization, less applicable credits.  The allowable costs shall not exceed the amount shown on the face page of this award for the total approved budget for the current budget period (line 16.a.(6) of the NFAA).

     b.  The allowability of costs for work performed under this grant and any subsequent subaward will be determined in accordance with the Federal cost principles applicable to the grantee or subrecipient in effect on the date of award or the date of the subaward, except as modified by other provisions of this grant or the subaward.  The grantee or subrecipient shall specify in any cost-reimbursement contract under the grant or subaward the applicable cost principles cited in this provision that apply to the contractor.

     c.  The Federal cost principles applicable to specific types of grantees, subrecipients, and contractors under grants and subawards are as follows:

          (1)  Institutions of Higher Education.  Office of Management and Budget (OMB) Circular A-21, “Cost Principles For Educational Institutions,” is applicable to both public and private colleges and universities.

          (2)  State and Local Governments and Indian Tribal Governments.  OMB Circular A-87, “Cost Principles for State and Local Governments,” is applicable to State, local, and Indian tribal governments.

          (3)  Hospitals.  Title 45 CFR Part 74, Appendix E, “Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals, “applies to nonprofit and for-profit hospitals.

          (4)  Other Nonprofit Organizations and Individuals.  OMB Circular A-122, “Cost Principles for Nonprofit Organizations,” applies to nonprofit organizations and individuals, except for those specifically exempted by the terms of the circular or those nonprofit organizations and individuals covered by the cost principles cited elsewhere in this term.  

          (5)  Commercial Firms and Certain Nonprofit Organizations.  Title 48 CFR Subpart 31.2, “Contracts with Commercial Organizations,” as supplemented by 48 CFR Subpart 931.2, applies to those nonprofit organizations not covered by OMB Circular A-122, and to all commercial organizations.