Indirect Cost (F&A) Rate Agreement
The following indirect costs rate information is provided as a guideline for proposals submitted by The University and is effective immediately:
- On-Campus Rate: The current on-campus federally negotiated Facilities and Administration (F&A) Costs rate applies to all proposals including those submitted to for-profit entities. The on-campus rate increases to 55 percent for FY 15 and FY 16 and to 56.5 percent in FY 17 and FY 18. Proposal budgets for new projects and competitive continuations should apply the rate that corresponds with the proposed start date for funding.
- Research proposals with a proposed start date of 09/01/2014 – 08/31/2016 should use 55%.
- Research proposals with a proposed start date of 09/01/2016 – 08/31/2018 should use 56.5%.
- All budgets utilizing the federally negotiated rate should be calculated on modified total direct costs (MTDC1).
- Effective 12/26/2014, projects funded through non-federal entities including agencies with federal pass-through funds must use the federal negotiated rate.
- The F&A Rate Agreement (PDF) is posted on the OSP website.
- Off-Campus Rate: The off-campus rate is 26.0% and should be calculated on modified total direct costs (MTDC) for projects conducted off-campus. The use of the off-campus rate must be approved in advance by the Office of Sponsored Projects. Requests for the off-campus rate must be received at least seven business days prior to the proposal deadline. In order for the off-campus rate to be considered, the off-campus portion of the project must take place for at least 90 consecutive days. In addition, at least one of the following criteria must be met:
- The combined proposed effort of all involved UT personnel working off-campus must be greater than the combined proposed effort of all involved UT personnel working on-campus. This includes unpaid contributed effort.
- The budget must include leasing or renting an off-site facility as a direct cost, and the personnel paid from the grant and any equipment must be located at that facility.
- The total direct costs incurred off-campus must exceed the total direct costs incurred on-campus.
- Other Sponsored Programs Rate: This rate should be used for conferences and other projects that do not fall under the research category. The rate is now 38% and should be calculated on modified total direct costs (MTDC).
- State Rate: Use for proposals funded using State, City and County funding, a 15% rate calculated on TDC2 is authorized.
- Not-for-Profit: Proposals to not-for-profit agencies without published rates should use a rate of 15% and should be calculated on the total direct cost (TDC2)
- Clinical Trial Rate: Effective September I, 2014, the rate for clinical trials and pre-clinical trials is 25% and should be calculated on the total direct costs (TDC2).
- Training Rate: The University’s current federally approved instruction rate is 50% of modified total direct costs.
- Note: The University of Texas at Austin will honor published (i.e. foundation) or statutory (i.e. USDA. the U.S. Department of Education) limitations on recovery of indirect costs.
- Modified total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified direct costs shall exclude equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships and fellowships as well as the portion of each subgrant and subcontract in excess of $25.000.
- Total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts. There are no exclusions. A gift to support research is not subject to indirect cost. It includes only those unrestricted funds provided to The University without any terms, conditions or other obligations. All gifts should be processed through the Development office.