The May, 1996 revision of OMB Circular A-21 includes in Section G-7 a provision that requires federal agencies to use the negotiated F&A rates in effect at the time of the initial competitive segment of an award throughout the competitive segment of the project. A competitive segment is a period of years approved by the federal funding agency at the time of the award.
F&A costs on grant and contract awards (both federal and non-federal) should be applied based on this revision of A-21. The rates in effect at the time of the initial competitive segment should be applied throughout the competitive segment of the project. The rates for supplemental awards (not included in the initial competitive segment), applied at the beginning of the supplement will be in effect throughout the remainder of the competitive segment for the supplement.
