How is the overhead rate for a foreign government research institution established and accepted for a research contract
This response is based on the information provided. We suggest you discuss with your contracting and finance team, program manager and/or legal department as appropriate.
We suggest you ask the State University how it made its decision the rates were reasonable when it entered its agreement with the foreign entity. Ask if the university is willing to share any cost data related to the overhead rate. The preceding would be the basis of a contracting officer's memo for record detailing the Army's acceptance of the rates as fair and reasonable. With that in the file, the contracting officer could issue a letter to the State University.