What Are Facilities and Administrative Costs? (aka indirect costs)?

Introduction

Facilities and administrative (F& A) are those costs which are not readily assignable to any specific project. Examples of costs which fall into this category are costs for utilities, maintenance, space, equipment use, accounting, purchasing, personnel services, research administration, and library services. F&A Reference Table

The F& A rate applicable to federal grants and contracts is negotiated with the federal government on a periodic basis. The current rate, base, and agreement date are required to be included on all applications for federal funds.

What rate should be used on a grant or contract?

The current federally negotiated research rate for Memphis on-campus is 50% until a new rate is established. The agreement date is 3/9/2011. The off-campus rate is 26% MTDC. Our "Cognizant Agency" is DHHS, Agency Point of Contact (POC) is Robbin Powell (301-492-4855).

For rates for instruction and other sponsored activities, please see rate agreement.

UTGSM - Knoxville:

The federal F&A rate for on-campus research at UT Graduate School of Medicine in Knoxville is 38.5% MTDC. The current agreement date is January 28, 2011. The off-campus rate is 22.3% MTDC.

Rate agreement to be posted

UTCOM-Chattanooga:

There is not a currently negotiated federal F&A rate for research conducted in Chattanooga; so F&A should not be included on federal grant proposals.

*MTDC = Modified Total Direct Costs, which are calculated as total costs less equipment ($5,000 or more), patient care, student stipends and tuition remission, capital expenditures, rent, and that portion of any subcontract over $25,000.

**Off-campus locations include the VA Medical Center, LeBonheur Children's Hospital (unless the project is conducted in space rented by UT), St. Jude Children's Research Hospital, etc. For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off-campus rate will apply. Grants or contracts will not be subject to more than one indirect cost rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project.

Private Sponsors:

The F&A rate for private sponsors is 20 percent of Total Direct Costs, unless the sponsor has a different published rate (e.g., American Heart Association allows 10%); in such cases, UTHSC accepts the published rate. However, if a private entity is the prime awardee on a federal grant and flows down some funds to UTHSC, the FULL FEDERAL RATE SHOULD BE USED.

Questions:

Questions about the F&A rate at Memphis should be directed to Deborah L. Smith (dsmith@uthsc.edu) in the Memphis Research Administration Office at (901) 448-4823.

Questions about F&As at UTGSM should be directed to Deb Strahler (dstrahler@mc.utmck.edu) at (865) 544-9749 or Deborah L. Smith (dsmith@uthsc.edu) in the Memphis Research Administration office at (901) 448-4823.

Requests for exceptional rates should be directed to Anthony Ferrara (aferra1@uthsc.edu) at (901) 448-5523.