POLICY OF THE NATIONAL CANCER INSTITUTE FOR ALLOWABLE BUDGET LEVELS OF COMPETING 
CONTINUATION (TYPE 2) R01 AND U01 APPLICATIONS - MODIFICATION AND CLARIFICATION

Release Date:  September 5, 2001

NOTICE:  NOT-CA-01-019

National Cancer Institute

The National Cancer Institute (NCI) recently published in the NIH Guide 
NOTICE:  NOT-CA-01-016, “POLICY OF THE NATIONAL CANCER INSTITUTE FOR ALLOWABLE 
REQUESTED BUDGET LEVELS OF COMPETING CONTINUATION (TYPE 2) R01 and U01 
APPLICATIONS”, Release Date:  August 7, 2001 at:  
http://grants.nih.gov/grants/guide/notice-files/NOT-CA-01-016.html.

The policy previously published will be retained, but in response to questions 
from awardees, a modification and two clarifications are listed below.  The 
purpose is to simplify some of the calculations and clarify the options 
available to applicants.

The modification that is being made is for applicants preparing non-modular 
budgets (i.e., applicants whose budgets exceed $250,000 direct costs in at 
least one year).  The initial policy specified that a requested increase of 
20% was permissible between the last award level and the average direct cost 
over all years of the renewal.  To simplify calculations, these applicants may 
request an increase of 20% between the last award level and the first year 
direct cost of the renewal.  This level may then be increased each year by the 
allowable cost-of-living factor.

One clarification deals with the allowable request for applicants requesting 
modular budgets. These applicants may calculate an increase of 20% from the 
last award level and then round up to the nearest modular amount.

A second clarification is that exemptions from this policy may be granted in 
unusual situations. Exemptions were not specifically addressed in the earlier 
NIH Guide Notice, but are mentioned in a “frequently asked questions” page at 
http://deainfo.nci.nih.gov/grantspolicies/newbudgetcap-faq.htm.

Requests for exemptions should be addressed, in writing, to the appropriate 
NCI Program Director.  Further complexities enter when the current budget or 
the budget requested in the competitive renewal varies significantly from year 
to year.  Several of these situations are dealt with explicitly in the 
original NIH Guide Announcement.  If you have questions not dealt with there, 
contact your Program Director for clarification.  Every effort will be made to 
advise applicants on the options available to sustain their ongoing research.

INQUIRIES
 
For questions or further information, contact your individual NCI program 
administrator or grants management specialist (listed on the current Notice of 
Award) or:

Associate Director for Referral, 
  Review and Program Coordination
Division of Extramural Activities
National Cancer Institute
6116 Executive Boulevard, Room 8051
Bethesda, MD  20892-8328
Telephone:  (301) 435-5655
Fax:  (301) 402-0742
Email:  db85g@nih.gov

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