Guidelines for Grant and Contract Management
303. Non-Federal Indirect Cost Rates
On October 28, 1987, the Provost of the University and the Vice President for Research and Argonne National Laboratory published a memorandum which described and explained University indirect costs rates for non-federal grants and contracts. The rates appear below. – March 2003
It is the policy of the University to request full funding of indirect costs on all grant and contract proposals. The non-federal indirect cost rates are as follows:
- For-profit sponsors funding basic research (including animal studies),
instruction, or other sponsored activities:
40% total direct costs - For-profit sponsors funding clinical testing (human studies) of
drugs or devices (See Clinical Trials):
25% total direct costs (Effective March 1, 2003) - Not-for-profit sponsors:
20% total direct costs - Not-for-profit sponsors with published rates:
Sponsor's published rate
For not-for-profit sponsors, in the absence of a stated indirect cost policy, the University adds to the proposed budget a line item of administrative costs (or overhead costs) at 20% total direct costs with the following explanation noted with the budget:
"In the absence of written policies regarding administrative costs and in accordance with University of Chicago policy, administrative costs of 20% of total direct costs have been included. If the (foundation/association/organization) has a stated policy regarding provision of administrative costs, we request that notification of that policy be made a part of the award notice."
