Sponsored projects often benefit from an extension period when progress is delayed or additional scope remains as the project end date is approaching. In research administration, we commonly refer to this as a No Cost Extension or NCE. NCEs are the most common “prior approval request” that sponsors can grant and that award recipients request. Many data points are required across sponsors to complete this request, so OSP created a NCE Request form as a clear communication resource to streamline the process. The Research Administrator team in OSP built and collaborated on our new NCE tool with consultation from Department and OSP representatives. Thank you all for your support and insights.
All sponsors need to know how much additional time is requested and for what purpose – which this quick form covers with requested end date, justification, remaining amount, and planned use of unallocated funds. Firstly, the new requested end date is necessary. Federal Sponsors will not extend greater than 12 months, but Non-Federal sponsors vary in options. Check your award agreement for No Cost Extension allowability and restrictions. Next, the Justification is key to stating the reason for the request, such as what impacted the timeline and why more time is necessary. No Cost Extensions are not approved for the purpose of “spending out funds”. Some sponsors request an Unallocated funds amount, which is the estimated amount of remaining funds upon the current award end date. So, you may project out the next few months of expenses such as Salary to reach this estimate. Lastly, the “planned use of unallocated funds brings all the above together by describing how funds support the extension period.
Initiate a one-time extension of the period of performance by up to 12 months unless one or more of the conditions outlined in paragraphs (e)(2)(i) through (iii) of this section apply. For one-time extensions, the recipient must notify the Federal awarding agency in writing with the supporting reasons and revised period of performance at least 10 calendar days before the end of the period of performance specified in the Federal award. This one-time extension must not be exercised merely for the purpose of using unobligated balances. Extensions require explicit prior Federal awarding agency approval when
(i)The terms and conditions of the Federal award prohibit the extension.
(ii)The extension requires additional Federal funds.
(iii)The extension involves any change in the approved objectives or scope of the project.
–2 CFR 200.308 Revision of budget and program plans
Check out the new OSP Quick Clip on Requesting a No Cost Extension on the OSP Training page
Use of the NCE Request form, can increase efficiency and clarity for this type of award management activity by capturing the required fields early on and eliminating back and forth email communication. The form is available on the OSP website Forms page.