The indirect cost rate is a percentage of Modified Total Direct Costs negotiated and approved by the Department of Health and Human Services. This means that when proposals for grants and contracts are submitted through the Office of Sponsored Programs, a percentage of the dollar value of the Modified Total Direct costs (MTDC) requested in the grant is added to the MTDC, resulting in the total project cost.
In accordance with our negotiated agreement with the Department of Health and Human Services, the following Predetermined Rate(s) should be used until further notice.
- Colleges and Universities Rate Agreement document (pdf). Date of Agreement: June 11, 2024
- Applicable to: Rate Base Period
| Type | Location | Rate/Modified Total Direct costs | Dates |
|---|---|---|---|
| Research | On Campus | 56.5% MTDC* | July 01, 2023 - June 30, 2024 |
| Research | On Campus | 57.0% MTDC* | July 01, 2024 - June 30, 2025 |
| Research | On Campus | 57.5% MTDC* | July 01, 2025 - June 30, 2027 |
| Research | On Campus | 58.0% MTDC* | July 01, 2027 - June 30, 2028 |
| DOD Contract | On Campus | 58.5% MTDC* | July 01, 2021 - June 30, 2023 |
| DOD Contract | On Campus | 59.5% MTDC* | July 01, 2024 - June 30, 2025 |
| DOD Contract | On Campus | 60.0% MTDC* | July 01, 2025 - June 30, 2027 |
| DOD Contact | On Campus | 60.5% MTDC* | July 01, 2027 - June 30, 2028 |
| Research | Off Campus** | 26% MTDC* | July 01, 2023 - June 30, 2028 |
| DOD Contract | Off Campus** | 28% MTDC* | July 01, 2023 - June 30, 2024 |
| DOD Contract | Off Campus** | 28.5% MTDC* | July 01, 2024 - June 30, 2028 |
| Other Sponsored Activities | On Campus | 30% MTDC* | July 01, 2023 - June 30, 2024 |
| Other Sponsored Activities | On Campus | 32% MTDC* | July 01, 2024 - June 30, 2026 |
| Other Sponsored Activities | On Campus | 34% MTDC* | July 01, 2026 - June 30, 2028 |
| Other Sponsored Activities | Off Campus** | 26% MTDC* | July 01, 2023 - June 30, 2028 |
| Instruction | On Campus | 50% MTDC* | July 01, 2023 - June 30, 2024 |
| Instruction | On Campus | 51% MTDC* | July 01, 2024 - June 30, 2028 |
| Instruction | Off Campus** | 26% MTDC* | July 01, 2023 - June 30, 2028 |
*MTDC = Modified Total Direct Costs: Total direct costs excluding capital expenditures (buildings, individual items of equipment over $5,000, alterations and renovations); that portion of each subaward in excess of $25,000; patient care; rental/maintenance of off-site activities; tuition remission; scholarships and fellowships.
**The Off Campus Research Rate applies only to activities of significant duration performed in facilities not owned by the University, and to which rent is directly allocated.
Indirect Facilities and Administrative (F&A) Costs Voluntary Waiver Form
On rare occasions the Vice Chancellor for Research and Innovation may authorize a reduction in indirect (F&A) costs rates with substantial justification. The Indirect (F&A) Costs Voluntary Waiver Form is required for this process and can be found on the RES Build Form Page. Job Aids & Training videos are available that describe how to complete, route, and approve this form. The Indirect (F&A) Costs Voluntary Waiver Form is only needed for voluntarily waiving the indirect (F&A) costs. Institutional approval is not required when a reduced indirect (F&A) cost rate is required in the sponsor guidelines as a condition of the award.
Please note: All Indirect (F&A) Cost Voluntary Waiver requests must be received at least five (5) business days in advance of the proposal deadline. Requests received less than five (5) business days in advance of the proposal deadline may be denied without consideration.