Materials and Supplies

Materials and Supply Costs

Material and supplies is a broad category of costs that contains all non-capital items like computers and electronic equipment as well as laboratory materials and research related supplies. The scope of work will drive what gets budgeted in this cost category. The expenses must benefit the project, as well as be specifically identifiable with the aims of the project.

Budgeted costs must be Reasonable, Allowable, and Allocable (RAA).

• Reasonable: Basis of cost should be provided in the Budget Justification. The cost should be based on existing costs for same or similar sponsored projects as it correlates to the needs of the project or should be based on actual quotes.  Note the basis of your cost estimate in your Budget Justification.
• Allowable: The sponsor must allow the budgeting of the cost. Federal cost principles for example restrict the charging of so-called administrative/office supply costing (see below).
• Allocable: Cost and use must be solely assignable to the sponsored project.

Administrative/Office Supplies (federal)

Office Supplies: This type of expense may be appropriate as a direct charge to a grant/contract only when it clearly benefits/supports programmatic objectives. Examples would include research notebooks and computer paper used during the technical course of a project. Items such as pencils, paper clips, memo pads and post-its are normally considered an indirect cost and therefore not allowable as a direct charge. Reasonable judgment should be exercised when charging office supplies directly to a grant/contract because they are likely to be highly scrutinized during sponsor proposal review or during an audit.

Postage: The direct charging of postage to an award for purposes such as the shipment of materials, mailing of research surveys to human subjects and submitting deliverables is appropriate if reasonable care is taken to assure that such costs are for the sole purpose of the grant/contract and can be specifically identified and justified as such. Routine correspondence is considered to be an indirect cost and not an allowable direct charge.

See Administrative Costs Requirements and the Guidelines for Charges to Sponsored Projects Funded by Federal Agencies

Animal Care Costs

Animal purchases are considered technical supplies. Budget the cost to purchase laboratory animals separately from the cost of animal care. Please consult with the Animal Care Services for current rates.

Computers and Electronic Equipment (Federal)

Although the Uniform Guidance indicates that computing devices need not be solely dedicated to the performance of the federal award, there is still the concept of allocability that must be addressed. We need to confirm the allocability of the item in terms of cost vs. the benefit to the project. The cost of the computer to the project must accrue to the budget proportionally to the expected use. We do need to confirm that if we are budgeting the full cost of the computer that it is not in turn being used for other projects as well.

Incidental use for non-project related emails, etc. is acceptable, but if the project is charged the total cost of the computer, it is assumed that the project benefits proportionally and it is not being used on other projects. If proportional usage is expected, then the amount budgeted must be based on some reasonable expectation of allocable use.

In summary, and other points to consider about costs for use of computers and electronic equipment:

• They must be necessary for and provide benefit to the project: the computer must be essential for project activities.
• They must be allowable: the computer is specifically identifiable to the grant as an "unlike circumstance.”  While the Uniform Guidance indicates that the computer does not need to be solely dedicated to the project — it can be split funded and shared with other projects — a robust justification must be provided in the budget narrative demonstrating “unlike circumstance” and thus the justification will provide very specific and robust details on how the technical and scientific nature of the project drives the need to budget computing and electronic devices.  To provide evidence of unlike circumstances, the Principal Investigator must document in the proposal that the use of the computer is beyond the normal and customary use and application of computers in the day‐to‐day operations of the laboratory
• The items must be directly allocable: the principal use of the computer must be directly allocable to the purpose, goals, and activities of the funded projects; they can be split funded with other projects but the justification should provide a rationale for charging a proportional cost to the grant.
• They must be reasonable: there must be an informed, prudent decision making regarding the basis of the cost, utility, and value to the project.
• Although incidental email use is acceptable, they must be non‐personal in nature.
• The need for the items has been included in the original proposal and completely justified as to the reason it is being included, the purpose and benefit to the project have been fully described.
• The PI is required to evaluate and ensure that the project does not have reasonable access to other devices or equipment that can achieve the same purpose. Devices may not be purchased for reasons of convenience or preference.  Include this evaluation in the budget justification.