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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:

If you have any questions regarding proposal budget preparation or implementation of the new rates, please contact your department’s OCG Proposal Analyst.