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Hi All, My company submitted a CPFF proposal (~$3.5M) to a major university as a sub. The solicitation was a DOD BAA which provided that contracts, grants, or other instruments may be awarded. We've been informed that the university was selected for award, and that a grant will be used by DOD rather than a contract. The university claims that, because it is a grant, fee is not allowed, but that we can "absorb" the fee amount originally proposed in other areas. I've done a fair amount of reading and cannot find any reference to a prohibition on fee under a grant. However, I've never dealt with grants before, so perhaps I've missed something somewhere. Does anyone have any information or insight regarding prohibiting fee on grants to awardees and sub-awardees?