F&A Indirect Cost

Facilities & Administrative Cost (F&A) - Indirect Cost Rates

Federally Negotiated Rates

EFFECTIVE JULY 1, 2016

Rate Applies to:On Campus Off Campus
Organized Research54.0% of MTDC26.0% of MTDC
Instruction/Training40.0% of MTDC26.0% of MTDC
Other Sponsored Activities36.0% of MTDC25.3% of MTDC

 

Industry Funded Clinical Trials

Rate Applies to:On CampusOff Campus
Clinical/Drug Studies26.0% of TDC26.0% of TDC

Federally Funded Clinical Trials - The University’s Federally Negotiated Organized Research rate (54% on campus, 26% off campus of MTDC) applies to all federally funded clinical trials, whether the funds are awarded directly from the federal sponsor or via flow through from an intermediary sponsor. 

Definitions

Off Campus

For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off-campus rate will apply. Sponsored agreements may not be subject to more than one F&A cost rate. If more than 50% of a project is performed off-campus (exclusive of any subcontract performance sites), the off-campus rate will apply to the entire project.

Modified Total Direct Costs (MTDC)

Consists of salaries and wages, applicable fringe benefits, materials, supplies, services, consultants, travel and up to the first $25,000 of each subaward (regardless of the period of performance of the subaward under the award). Modified Total Direct Costs excludes equipment ($5,000 or greater per item), capital expenditures, charges for patient care, tuition remission, participant support costs, rental costs, scholarships and fellowships, as well as the portion of each subaward in excess of $25,000.

Total Direct Costs (TDC)

All of the direct costs of the project.

Additional Definitions

For additional definitions (Organized Research, Other Sponsored Activities, etc.) please see Appendix III of 2 CFR 200.

Budgets for sponsored agreements must include the full appropriate amount for F&A costs unless reduced under one of the following exceptions:

i. The governmental or non-profit Sponsor has an established, published policy limiting the amount of F&A costs. Documentation must be attached to the clearance form (e.g. PCF or TRIA/MIRA) for consideration of reduction of the F&A costs. In these instances F&A will be calculated based upon total direct costs (TDC) with no exclusions unless otherwise stated.

ii. Proposals to companies that will not pay the appropriate F&A cost rate must include as direct costs the difference between the company's rate and UofL’s rate. Proposals without these adjustments will not be accepted by the Office of Sponsored Programs Administration or the Office of Industry Engagement. Subaward proposals (including SBIR & STTR programs) should contain the F&A rate applicable to the primary sponsor (i.e. the ultimate source of funds). For example, if the activity is to be performed on campus under a subaward from a company supported with federal SBIR/STTR funds, the F&A rate applicable to the proposal/project would be 54% MTDC.

iii. Commonwealth of Kentucky proposals - All new proposals to agencies of the Commonwealth of Kentucky must include the full F&A cost rate allowed by the respective Cabinet. Any negotiations of the F&A rate must be handled by the Office of Sponsored Programs Administration.

Any other exceptions to these established rates must be requested in writing to the Office of Sponsored Programs Administration (OSPA), the Office of Industry Engagement (OIE) or the Clinical Contracts Division (CCD) as appropriate.

If a Principal Investigator (PI) wishes to request an exception (e.g. accepting a lower F&A rate from a non-profit sponsor that does not have a published policy limiting the F&A), the PI must make a request via the F&A Cost Burdening Waiver Request form. The request must indicate the rationale for the exception (e.g. why the department/University will benefit from performing the project without having full cost recovery) and be transmitted through his/her Chair and Dean to obtain their concurrence with the request. The request must be received by OSPA, OIE or CCD at least ten business days prior to the sponsor's deadline date in order for the exception request to be considered by the Executive Vice President for Research and Innovation.

As appropriate, the respective office will contact the potential sponsor to negotiate F&A rates. The institution reserves the right to refuse proposals with less than the approved F&A cost rate. Questions should be directed to Judy Bristow, Director of the Office of Sponsored Programs Administration, Lauren Goralski, Assistant Director of the Office of Industry Engagement or Brennan Cox, Assistant Director of the Clinical Contracts Division.

A copy of the University's rate agreement with UofL's cognizant agency, the Department of Health and Human Services (approval date of May 2015) can be found at the following website - http://louisville.edu/research/common/fa-rate-agreement.