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COVID-19: Information from SPA/OSP/CGA

Develop Budget

A proposal budget reflects the Principal Investigator's best estimate of the costs for conducting the project within a defined time period.  The time period is usually specified by the sponsor in the Request for Application (RFA) and most projects are funded for at least a one year period.  OSP generally recommends an inflationary increase between 2-4% for all budget categories when appropriate.

In all cases the proposal budget should follow the sponsor’s published guidelines (included as part of the RFP or located on the sponsor’s website). When the sponsor does not provide a budget or budget justification template or related instructions, we recommend using the following budget guidelines with the understanding that there can be exceptions for each category.

Helpful information and tools for international projects can be found at the following link:

Additionally, cost share is the portion of total project costs that are paid from sources other than the sponsor in order to complete the project's statement of work. Visit the Cost Share Policy page for more information regarding how to address cost sharing.  Contact your OSP representative for further guidance.

For more information about each budget category, visit the Federal Uniform Guidance 2 CFR 200, MSU's Federal Cost Policy, and the following webpages:

Salary and Fringe Benefits



Participant Support Costs

Other Direct Costs

Facilities and Administrative Cost Rates

Budget Justification


When the sponsor does not request a specific budget target, detailed budget or justification in the RFA, we highly recommend preparing an internal MSU budget so that the statement of work can be tied to the total estimated requested amount.  However, OSP understands that this may not practicable or practical.  In these situations, the normal processes listed in the OSP Proposal Preparation Guide should be followed and the eTransmittal should include a note explaining rational for not preparing an internal MSU budget.  Include in the note the possible award range if specified by the RFA and use estimates for the first year and total project requested amounts.  Contact your OSP representative for further guidance.

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