Equipment

Equipment 

The definition of equipment, as stated in 45 CFR Parts 74 and 92, is an article of tangible nonexpendable personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. 

• Itemize each piece of equipment listing specific brand names and associated specifications that affect costing.
• In the budget justification, verify why the equipment is needed to carry out the specific aims of the project.
• Costing must be based on vendor quotes or published catalog rates. Do not guesstimate.
• Note dedication level in the justification. If budgeting the full cost of the equipment, the proposed project must receive the full benefit of its use. 
• If a piece of equipment benefits two or more projects, the cost should be allocated proportionately. It is generally expected that only large equipment items should be split funded. Provide the rationale for split funding and be sure to make a direct parallel between expected proportional use and corresponding proportional cost. 
• If the sponsor's indirect cost base is Modified Total Direct Cost (MTDC), equipment is exempt from indirect costs. If it’s a Total Direct Cost (TDC) base, it is not exempt from indirect costs. 

Fabricated Equipment 

Fabricated Equipment is an item of capital equipment that has been constructed at UMass by UMass personnel specifically for a UMass project, as opposed to being purchased “off the shelf” from a vendor or commercial supplier. Fabricated Equipment must satisfy the Federal definition of equipment, meaning it must have a total cost of $5,000 or more, must be non-expendable and must have a useful life of one year or more. 

From time-to-time for reasons of cost efficiency, timeliness of delivery, non-availability or uniqueness of a particular piece of equipment, it may be necessary or advantageous for a research project to fabricate a piece of equipment rather than purchase the item. Such Fabricated Equipment is exempt from the Indirect Cost (F&A) Rate, subject to the criteria listed in the requirements: Fabricated Equipment Costs on Federal Research Grants and Contracts.

Principal Investigators should select Yes to fabricated equipment in the Kuali questionnaire and fill out the further questions.