Memorandum Announcing New Indirect Cost (Facilities and Administrative - F&A) Rates
July 14, 2021
MEMORANDUM
TO:ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý Chancellor DiStefano, Provost Moore, Chief Operating Officer O’Rourke, Deans, Associate Deans for Research, Directors, Institute Directors & Department Chairs
FROM:ÌýÌýÌýÌýÌýÌýÌýÌý Terri Fiez, Vice Chancellor for Research & Innovation
ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý Carla Ho’a, Vice Chancellor and Chief Financial Officer
SUBJECT:Ìý New Indirect Cost (Facilities and Administrative - F&A) Rates
The Indirect Cost Rate Agreement, also known as the Facilities and Administrative (F&A) Cost Rate Agreement between ²ÊÃñ±¦µä and the U.S. Department of Health and Human Services (DHHS) was successfully negotiated with new rates through fiscal year 2023. This new rate agreement is based on ²ÊÃñ±¦µä’s proposal submitted to DHHS for fiscal year 2017.
Indirect costs are essential to ²ÊÃñ±¦µä’s status as a Tier 1 research institution. These costs are not directly allocated to individual research projects, and they consist of costs such as research facility utilities, maintenance, security, information technology, and research administration.
The following table represents the updated rates for Instruction, Organized Research and LASP Research, and two new rates approved by DHHS for Other Sponsored Activities and Intergovernmental Personnel Act Rate.
Ìý | Instruction | Organized Research | LASP Research | Others Sponsored Activities | Intergovernmental Personnel Act |
Previous Rate | 49.00 | 54.00 | 40.00 | 0.00 | 0.00 |
Rate thru FY2023 | 47.50 | 56.50 | 43.00 | 33.50 | N/A |
Off Campus Rate | 26.00 | 26.00 | 43.00 | 14.40 | 10.00 |
The data collection and negotiation process for ²ÊÃñ±¦µä’s rate agreement is overseen by the Campus Controller’s Office. The Office of Contracts and Grants (OCG) will begin to use the new rates effective for all new proposal submissions dated July 13, 2021 and forward.
Links to indirect cost information and resources:
- Federally-negotiated Indirect Cost Rate Agreement
- Rates and Rate History
- ²ÊÃñ±¦µä Indirect Cost (F&A) Recovery Policy
- ²ÊÃñ±¦µä Application of Indirect Cost (F&A) on Sponsored Projects
- Understanding Indirect Costs Handout
If you have any questions regarding proposal budget preparation or implementation of the new rates, please contact your department’s OCG Proposal Analyst.