If a sub-awardee (EN partner) has indirect costs as well, do they also need a Negotiated Indirect Cost Agreement in place?

Both organizations (lead applicant and the partner(s)) can charge indirect costs, but each organization must adhere to its own rate agreement (and allowable costs under the base). Additionally, these costs would be captured in separate cost categories: 

• In the proposed project’s budget, the lead organization’s indirect costs would be captured in the cost category of ‘indirect costs’, using their own current IDC rate or the 15% de minimus rate. 
• The partnering organization indirect costs should instead be included in the subaward for this partner (under the cost category of ‘other’) and in Section H in the Standard Form 424a.

Please include the IDC agreement of partnering organizations charging indirect costs as an additional application attachment, ensuring that the agreements are valid until at least 9/30 of that fiscal year (so, 9/30/25 for FY25 awards). These costs must also be listed and described within the submitted ‘Formal Project Partners’ attachment (Additional Attachment C).