Consumables used in the performance of your project are included in the supplies and materials category. Examples include laboratory glassware, chemicals, reagents, clinical supplies, laboratory notebooks, and data processing supplies.
Office supplies, such as binders, pens, paper, personal computers, flash drives, postage, etc., are usually not allowable as direct costs on grants, unless specifically permitted by the sponsoring agency. Federal agencies normally treat these costs as Facilities & Administrative Costs. The Financial Services Manual provides information on allowable costs.
Include a description of each category (e.g., reagents) and an estimated cost. The cost estimate should be based on catalog prices, vendor quotes or historical costs for the item, and should include costs associated with obtaining the material, including shipping, handling, and delivery charges.
When including animals, state the species and number of animals in the budget. Animal care costs (per diem) and shipping costs are included in the “Other Costs” category. The Animal Care and Use Committee site provides information on the use and care of animals.
2 CFR §299.453, Materials and Supplies Costs, provides guidelines for materials and supplies costs on federally-funded grants:
a. Costs incurred for materials, supplies, and fabricated parts necessary to carry out a sponsored agreement are allowable.
b. Purchased materials and supplies shall be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms should be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are a proper part of materials and supplies costs.
c. Materials and supplies used for the performance of a Federal award may be charged as direct costs. In the specific case of computing devices, charging as direct costs is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award.
d. Where federally-donated or furnished materials are used in performing the Federal award, such materials will be used without charge.
Genomic Arrays
The National Institutes of Health (NIH) issued Notice NOT-OD-10-097, Budgeting for Genomic Arrays for NIH Grants, Cooperative Agreements and Contracts, on May 13, 2010. It governs the recovery of Facilities & Administrative (F&A) costs when purchasing genomic arrays. The NIH limits F&A cost reimbursement on purchases of genomic array supplies to the first $75,000 in each grant budget year. Any amount in excess of $75,000 in a given budget year will not be assessed F&A costs. NIH applied this policy prospectively to new competitive awards issued after May 13, 2010.