Proposal costs are defined as the costs of preparing bids, proposals, or applications on potential Awards, including the development of data necessary to support the UW’s bids or proposals.

For most federal Awards, proposal costs, for both successful and unsuccessful bids, are not allowable as direct costs.  Proposal costs should be treated as indirect (F&A) costs. The cost of preparing a progress report on a non-competing year of a multi-year grant or contract is not considered a proposal cost and is therefore an allowable direct cost.

NOTE: Certain federal agency research training programs may allow the direct charging of proposal preparation costs.  Refer to the specific federal agency and award terms and conditions.

For reference only:

§200.460   Proposal costs.

Proposal costs are the costs of preparing bids, proposals, or applications on potential federal and non-federal awards or projects, including the development of data necessary to support the non-federal entity's bids or proposals. Proposal costs of the current accounting period of both successful and unsuccessful bids and proposals normally should be treated as indirect (F&A) costs and allocated currently to all activities of the non-federal entity. No proposal costs of past accounting periods will be allocable to the current period.