Facilities & Administrative (F&A) rates (sometimes referred to as indirect costs) for use in sponsored project proposal budgets.
F&A Rate Usage Guidelines
Proposals for new and competing renewal awards should use the latest set of rates in effect, while proposals for non-competing continuations (e.g., annual NIH continuations) should use the fixed rates that were in effect and frozen at the time of the initial award (per UG below). In this context, "competing" refers to the amount of time originally proposed. For example, a five-year award will be subject to the rate schedule in effect at the time of the award, even when the funds are released annually. However, an award that has additional time added (excluding No Cost Extensions) will be subject to the then-current rates on the extended period. For both Endowed and Contract Colleges, F&A costs are calculated on modified total direct costs (MTDC), which equals the total direct costs less the following exclusions:
- Capital equipment items with a unit cost of $5,000 or more and a useful life of more than one year. ($100,000 threshold for computer software)
- Cost in excess of $25,000 on each subcontract (F&A costs are charged on the first $25,000 of each subcontract).
- GRA exclusion (amount of GRA support equivalent to tuition and fees including Graduate Health Insurance).
- Leases of real property.
- Participant support costs for conferences, seminars and certain training programs.
Provisional F&A Rates: Provisional rates may be in effect at the time of an award. Provisional rates are not negotiated rates and are used for interim budgeting and billing purposes in order to allow adequate time for F&A rate negotiations. The provisional rate is used in proposals and sponsor billings until such time as rates (fixed or predetermined) are negotiated. Once rates are negotiated individual awards are adjusted to reflect the negotiated rate.
Guidelines for awards issued under prior rate agreements:
|If the last competitive award segment was in Fiscal Year:||Then use the following rates:|
|Endowed College||Contract College||Contract College ESA||F&A Rate Agreement Date|
|2017 - 2021||See Rate Matrix|
|2012 - 2016||61.00%||55.00%||59.00%||12/14/2011|
|2010 - 2011||59.00%||54.00%||56.70%||7/30/2009|
|2006 - 2009||59.00%||54.00%||56.70%||10/26/2005|
|2004 - 2005||58.00%||58.00%||60.00%||10/2/2003|
Uniform Guidance Appendix III Section C.7 states the following:
"Federal agencies must use the negotiated rates in effect at the time of the initial award throughout the life of the Federal award. Award levels for Federal awards may not be adjusted in future years as a result of changes in negotiated rates. “Negotiated rates” per the rate agreement include final, fixed, and predetermined rates and exclude provisional rates. “Life” for the purpose of this subsection means each competitive segment of a project. A competitive segment is a period of years approved by the Federal awarding agency at the time of the Federal award. If negotiated rate agreements do not extend through the life of the Federal award at the time of the initial award, then the negotiated rate for the last year of the Federal award must be extended through the end of the life of the Federal award.”