<div dir="ltr"><div><p class="MsoNormal" align="center" style="margin:0in;text-align:center;line-height:normal;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><b><i><span style="font-size:11pt;font-family:Arial,sans-serif;color:rgb(192,0,0)">~~ Please disseminate
this information with those researchers and research administrators in your
department who may find it noteworthy ~~</span></i></b><span style="font-family:Arial,sans-serif"></span></p>

<p class="MsoNormal" align="center" style="margin:0in;text-align:center;line-height:normal;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Arial,sans-serif"> </span></p>

<p class="MsoNormal" align="center" style="margin:0in;text-align:center;line-height:normal;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><b><i><span style="font-size:11pt;font-family:Arial,sans-serif"> </span></i></b><span style="font-family:Arial,sans-serif"></span></p>

<p class="MsoNormal" style="margin:0in;line-height:normal;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-size:8pt;font-family:Garamond,serif;color:rgb(7,55,99)"> </span></b></p>

<p class="MsoNormal" style="margin:0in;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;line-height:115%;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-size:16pt;font-family:Garamond,serif;color:rgb(7,55,99)">DOD info request related
to DOD 15% Indirect Cost (Facilities and Administration) rate cap: Recommended
Response </span></b></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">Both the Association of American Universities (AAU) and the
Association of Public Land Grant Universities (APLU) have sent messages to
member institutions alerting them to a request some institutions have
received from the Department of Defense (DOD) asking for information “document[ing]
any risk associated with the potential future implementation of th[e 15%]
directive.”   Specifically, DOD has asked universities to send them the
following information: “(a) Current indirect rates, (b) Any risk to DoD if your
institution does not agree to 15% cap and we are forced to terminate the
agreement, (c) Any risk to the university if they are forced to accept the 15%
cap.”</span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">This pertains to the 15% F&A rate cap that DOD sought to apply but
that is not now in effect due to the preliminary injunction issued in AAU
v. DOD (a case in which the University of California is a plaintiff).</span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">Given the ongoing litigation challenging the DoD Indirect Cost rate
cap, the associations and their counsel at Jenner & Block had advised that institutions
exercise caution in how they respond, since their responses could be germane
and material to the lawsuits.    </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-family:Garamond,serif">  </span></b><span style="font-family:Garamond,serif"></span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><u><span style="font-family:Garamond,serif">In response to efforts by Jenner & Block, DoD agreed to send an
instruction to the heads of DoD’s grant-making components today directing them
to STOP including a term in new awards that requires grantees to
affirmatively agree to a term that will automatically revert to a 15% indirect
cost rate if they prevail in litigation.</span></u><span style="font-family:Garamond,serif">   <u></u></span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><br></p>

<p class="MsoNormal" style="text-align:center;margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-family:Garamond,serif;color:rgb(7,55,99)">UC GUIDANCE</span></b></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">Jenner & Block provided the following advice, which UC Legal supports:</span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif;color:rgb(7,55,99)">If schools have pending requests to agree to a future 15% rate, they
should respond by indicating that they understand DOD is no longer requiring
this term and ask for it to be removed as needed.</span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">If you have questions about responding to a DoD request, please send an
email to </span><span style="color:black"><a href="mailto:REDalert@ucr.edu" style="color:rgb(70,120,134)"><span style="font-family:Garamond,serif">REDalert@ucr.edu</span></a>.</span><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">  </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">* * * </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"><br></span></p><p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">As a reminder, UC Legal previously issued guidance re: the use of reservation
of rights language related to IDC rate caps in proposal submissions to the DoD. 
Such guidance continues to be in effect and reads as follows:</span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif">To ensure the agency does not construe an institution’s proposal
submission as an “acceptance” of the 15% IDC rate, UCR should submit proposals
to DoD using our federally negotiated rate <u>and</u> include the
following “reservation of rights” language to explicitly reserve UCR’s right to
challenge retroactive application of the 15% rate:</span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif;color:rgb(7,55,99)">“We are submitting this application using the indirect cost rate as
stipulated in our federally negotiated rate agreement.  We note that as of
June 17, 2025, application of the 6/12/25 Department of Defense internal
Memorandum “Implementation of a 15% Indirect Cost Cap on Assistance Awards to
Institutions of Higher Education” is temporarily enjoined, in connection with
the Temporary Restraining Order (TRO) issued in connection with <i>AAU v.
DoD</i> (D. Mass., No. 25-cv-11740).  We therefore plan to draw down
in accordance with the University’s negotiated rate.  We reserve the right
to challenge the attempted retroactive application of the 15% IDC rate cap memo
should the TRO be lifted or should there be another court ruling allowing
implementation of the rate cap specified in the Memo.”  </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:13.8pt;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-family:Garamond,serif"> </span></p>

<p class="MsoNormal" style="margin:0in;line-height:normal;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-size:8pt"> </span></p>

<p class="MsoNormal" align="center" style="text-align:center;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;margin:0in 0in 8pt;line-height:115%;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-size:16pt;font-family:Garamond,serif;color:rgb(7,55,99)">IMPACT23 – Weekly Office
Hours: Kuali Sponsored Programs</span></b></p>

<p class="MsoNormal" align="center" style="text-align:center;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;margin:0in 0in 8pt;line-height:115%;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-size:14pt;font-family:Garamond,serif">Please join us for the
weekly Kuali Sponsored Programs Office Hours each Thursday from 9 – 9:30 a.m.
via ZOOM at </span><span style="font-size:14pt;font-family:Garamond,serif;color:black"><a href="https://ucr.zoom.us/j/95269242540" style="color:rgb(70,120,134)">https://ucr.zoom.us/j/95269242540</a></span><span style="font-size:14pt;font-family:Garamond,serif">.</span></p>

<p class="MsoNormal" align="center" style="text-align:center;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;margin:0in 0in 8pt;line-height:115%;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-size:14pt;font-family:Garamond,serif">We hope to see you
there!</span></b></p>

<p class="MsoNormal" align="center" style="margin:0in;text-align:center;line-height:normal;background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;font-size:12pt;font-family:Aptos,sans-serif"><br></p>

<p class="MsoNormal" style="background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;margin:0in 0in 8pt;line-height:115%;font-size:12pt;font-family:Aptos,sans-serif"><b><span style="font-size:16pt;font-family:Garamond,serif;color:rgb(7,55,99)">Research List-Serv</span></b></p>

<p class="MsoNormal" style="background-image:initial;background-position:initial;background-size:initial;background-repeat:initial;background-origin:initial;background-clip:initial;margin:0in 0in 8pt;line-height:115%;font-size:12pt;font-family:Aptos,sans-serif"><span style="font-size:14pt;font-family:Garamond,serif">Do you know of someone in your department who is not
currently registered to receive newsletters (such as this one) from the
Research listserv, but would like to?  If so, please forward their name
and email address to Cynthia Johnson at </span><span style="color:black"><a href="mailto:cwells@ucr.edu" target="_blank" style="color:rgb(70,120,134)"><span style="font-size:14pt;font-family:Garamond,serif">cwells@ucr.edu</span></a></span><span style="font-size:14pt;font-family:Garamond,serif">.</span><b><span style="font-family:Garamond,serif"> </span></b><span style="font-family:Garamond,serif"> </span></p></div><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div></div></div></div></div></div>