An initial proposal typically includes a technical proposal and a business proposal. A business proposal usually consists of a budget and supporting documentation. Many solicitations call for the budget to be submitted on sponsor-specific forms, so it is important to read the solicitation thoroughly to determine the sponsor requirements.
Here are some important factors to consider when preparing a business proposal in response to a solicitation that could result in a federal contract:
- The business proposal must be --
- as detailed as possible, and
- in the format required by the solicitation or other sponsor guidelines.
- Indirect costs must be in accordance with the University of Pittsburgh’s federally-negotiated rate agreement.
- For proposals with total costs for the entire project over the threshold defined in FAR 15.403-4, the Government Contracting Officer may require a Certificate of Current Cost or Pricing Data.
- When required, University must certify that the provided cost or pricing data is accurate, complete, and current as of the date provided.
- This certificate must be signed by an institutional signatory in the Office of Sponsored Programs.
- Failure to provide correct cost data may result in --
- Reduction of final award, and/or
- Other penalties per FAR 15.407-1.
- Certain IT security requirements may involve significant additional costs. The PI and department admin are advised to confer with Pitt Information Technology (Pitt IT) when a solicitation references Federal Information Security Management Act (FISMA) or other IT security requirements.
- Per federal regulations, all faculty members listed as the Principal Investigator on a sponsored project must contribute some level of effort to that project to provide necessary supervision/administration. This must be shown or documented in the related budget or project materials.
- For additional information on Effort Reporting, refer to https://www.controller.pitt.edu/cost-accounting/cost-accounting-compliance/.
- If the budget does not include funding for the PI’s effort, that effort must be cost shared. Please see the University policy on cost sharing for additional information: https://www.controller.pitt.edu/cost-accounting/cost-accounting-compliance/.