Facilities and administrative (F&A) costs, also known as indirect costs, are defined in the federal Uniform Guidance as “costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.” A federally approved percentage, known as the F&A rate, is applied to sponsored projects in order to recover the allowable overhead costs associated with conducting organized research. Starting in FY2023, separate F&A rates are negotiated for Organized Research (OR) and Other Sponsored Activities (OSA).
Please see our Off-Campus Facilities and Administrative (F&A) Rate Policy for details regarding projects conducted off-campus.
F&A Rate On-Campus Cost Components
| FACILITIES COSTS: | FY2023-FY2024 | FY2025-FY2027 | ||
| Component | OR | OSA | OR | OSA |
| Building Depreciation | 10.0% | 2.1% | 10.0% | 2.1% |
| Equipment Depreciation | 3.0% | 0.1% | 3.0% | 0.1% |
| Plant operation and maintenance | 14.0% | 3.1% | 16.0% | 3.1% |
| Interest Expense | 5.0% | 1.0% | 5.0% | 1.0% |
| Library | 4.0% | 2.7% | 4.0% | 2.7% |
| Subtotal: Facilities | 36.0% | 9.0% | 38.0% | 9.0% |
| ADMINISTRATIVE COSTS: | FY2023-FY2024 | FY2025-FY2027 | ||
| Component | OR | OSA | OR | OSA |
| General Administration (G&A) | 8.2% | 8.4% | 8.2% | 8.4% |
| Departmental Administration (DA) | 12.7% | 11.9% | 12.7% | 11.9% |
| Sponsored Projects Administration (SPA) | 5.1% | 5.7% | 5.1% | 5.7% |
| Subtotal: Administrative (Federal Cap of 26%) | 26.0% | 26.0% | 26.0% | 26.0% |
| Total F&A Rate | 62.0% | 35.0% | 64.0% | 35.0% |
Rate Calculation and Application
The current F&A rate is based on a study of the actual costs of on-campus organized research in FY2010-2020. See our formal rate agreement.
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Federal Reimbursement for Administrative Costs: Capped at 26%
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Off-Campus OR and OSA Rate: 26%
Historical F&A Rates
These rates are negotiated with the Department of Health and Human Services.
| Fiscal Years | On Campus | Off Campus |
|---|---|---|
| FY 2018 - FY 2022 | 62.0 | 26.0 |
| FY 2015 - FY 2017 | 62.0 | 26.0 |
| FY 2009 - FY 2014 | 61.0 | 26.0 |
| FY 2005 - FY 2008 | 58.0 | 26.0 |