Guidelines for Grant and Contract Management
304. Federal Facilities & Administrative Cost Rates
The University of Chicago's Facilities and Administrative (F&A) cost rate agreement with the federal government provides that the F&A (frequently referred to as "indirect") cost rates indicated in the Agreement be used in proposals submitted to federal funding agencies. Only the appropriate rates that have been established in the negotiated F & A Rate Agreement should be shown/used in budgets
Indirect costs are costs that are not directly related to a sponsored project (e.g., costs for general operations such as utilities, building operations, library services, purchasing, administrative offices, etc.) but are associated with the cost of doing research and/or training.
Federal indirect costs are calculated against a Modified Total Direct Cost (MTDC) base. The MTDC base includes salaries and wages, fringe benefits, materials and supplies, consultants, services, travel, subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract, and animal costs (purchases, perdiems, lab work). Animal Costs are a new addition to the MTDC base. Please note that as Animal Costs are in the MTDC base, federal agreements will no longer include the direct cost Animal Facility Charge as in the previous rate agreement.
For the fiscal year (July 1, 2001-June 30, 2002), animal expenditures on Federal projects will be charged an overhead rate limited to the financial equivalent of the old Animal Facility Charge of 35%. The transition in the treatment of animal costs will be completed on July 1, 2002. After that date, animal costs will be charged the current negotiated F&A rate.
Specifically excluded from the MTDC base are equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships and fellowships, Physical Sciences Division Central Shop charges, and the portion of each subgrant and subcontract in excess of $25,000 (e.g. $5,000 would be excluded from the direct cost base in a subcontract of $30,000). – March 2003
304.2 Federal Facilities & Administrative Cost Rates
All Rates Indicated Below Are Calculated Against Modified Total Direct Cost (MTDC)
| Award Type | Competitive Segment (Project Period) Begin Date |
F&A Rates to be Applied | |||||
| 7/1/04 through 6/30/05 |
7/1/05 through 6/30/06 |
7/1/06 through 6/30/07 |
7/1/07 through 6/30/08 |
7/1/08 through End of Project Period |
|||
| Research | 6/30/04 and before | On-Campus Off-Campus |
52.5% 26.0% |
52.5% 26.0% |
52.5% 26.0% |
52.5% 26.0% |
52.5% 26.0% |
| After 6/30/04 but before 7/01/08 |
On-Campus Off-Campus |
52.5% 26.0% |
52.5% 26.0% |
53.5% 26.0% |
53.5% 26.0% |
53.5% 26.0% |
|
| 7/01/08 and later (1) | On-Campus Off-Campus |
na na |
na na |
na na |
na na |
54.0% 26.0% |
|
| Instruction | Before 7/01/08 | On-Campus Off-Campus |
45.0% 26.0% |
45.0% 26.0% |
45.0% 26.0% |
45.0% 26.0% |
45.0% 26.0% |
| 7/01/08 and later (1) | On-Campus Off-Campus |
45.0% 26.0% |
|||||
| Other Sponsored | Before 7/01/08 | On-Campus Off-Campus |
33.0% 26.0% |
33.0% 26.0% |
33.0% 26.0% |
33.0% 26.0% |
33.0% 26.0% |
| 7/01/08 and later (1) | On-Campus Off-Campus |
33.0% 26.0% |
|||||
Note: (1) Provisional rates subject to adjustment.
Other sponsored activities may include some seminars, conferences,
exhibits, travel, etc.
Off-campus activities are performed in facilities not owned
by the University of Chicago.
