F&A Rate

The Facilities and Administrative (F&A) rates (also known as indirect costs or overhead) are to support claims for indirect costs on grants and contracts with the Federal Government. The agreement also includes negotiated fringe benefit rates to be applied to sponsored projects.

All federal and non-federal sponsored programs should reimburse the University for the F&A costs in addition to the direct costs. The F&A Rate is intended to compensate the University for the sponsored research infrastructure support expenses such as building costs, equipment depreciation, utilities, maintenance, administration support, and sponsored program administration that are not included in the direct costs.

The current rate agreement had a slight change from the prior version to replace the verbiage of 'subgrants and subcontracts' with the word 'subaward'.  This nomenclature change was made by the cognizant agency to maintain consistency with the Uniform Guidance.  The Distribution Basis defined in Appendix III of the Uniform Guidance is utilized to incorporate both 'subgrants and subcontracts' as subawards in addition to the definition of subaward in section 200.92 of Uniform Guidance.