Facilities and Administrative (F&A) Cost Rates
The federal Office of Management and Budget (OMB) defines F&A costs as "those incurred for common or joint objectives and therefore not identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity."
|Effective Period||On-Campus||Off-Campus||Previous Period(s)|
|Organized Research||July 1, 2020 through June 30, 2021||57.0% MTDC||26.0% MTDC|
|Other Sponsored Activities||July 1, 2020 through June 30, 2021||43.5% MTDC||26.0% MTDC|
|Instruction||July 1, 2020 through June 30, 2021||47.5% MTDC||26.0% MTDC|
|Clinical Trials (for-profit sponsors)||July 1, 2018 and beyond||32% TDC||32% TDC|
|State of California Agreements||July 1, 2019 through June 30, 2023||30% MTDC**||25% MTDC**|
|July 1, 2023 through June 30, 2024||35% MTDC**||25% MTDC**|
|July 1, 2024 and beyond||40% MTDC**||25% MTDC**|
Exceptions to the Negotiated F&A Cost Rates
University of California policy requires the full recovery of direct and indirect (F&A) costs whenever possible. Exception requests are considered for non-profit sponsors, a few situations involving for-profit sponsors and foreign governments, and a Campus Vital Interest. Class exceptions can be approved based upon sponsor policy. Exceptions based on Campus Vital Interest and the SBIR/STTR Phase 1 F&A Rate Reduction program are individual exceptions. See Research Policy 483-4: Policy on Full Cost Recovery and Facilities & Administrative (F&A) Cost Rate Waivers or Reductions for a description of the categories eligible for a Vital Interest waiver.
Investigators should submit the justification for a Campus Vital Interest waiver or a reduction of F&A costs along with the project budget to the Sponsored Projects Officer or Industry Sponsored Research unit in Applied Innovation (for research projects funded by for profit sponsors) assigned to your unit for review and consideration. Likewise, questions about this process should be submitted to the appropriate area (Sponsored Projects or Applied Innovation) depending on the public/private nature of the sponsor.
Applying and Calculating F&A Cost Rates in Proposal Budgets
The above rates must be used when estimating F&A costs in proposals to extramural sponsors. Use of a rate other than those identified above requires approval of a waiver request.
To calculate F&A costs in Clinical Trial budgets – Multiply the total of all budget items (Total Direct Cost, TDC), excluding UC campus subcontracts, by the Clinical Trial F&A rate.
For all Other Projects - Calculate the Modified Total Direct Cost (MTDC) base by subtracting the excluded costs listed below from the budgeted Total Direct Costs:
- equipment and capital expenditures;
- patient care costs for services provided by a hospital or clinic, including UCI Medical Center, but not the laboratories of academic departments or organized research units or salaries of personnel providing the services;
- rental, lease and maintenance costs of off-campus space;
- tuition remission;
- financial aid paid directly to University students, but not as salaries and wages, when allowable under the terms of the award;
- subawards issued to other UC campuses; and
- the portion of each non-UC subgrant and subcontract in excess of $25,000. Renewal of a prime award generally requires the issuance of a new subaward, hence indirect costs are charged to the first $25,000 of the renewed subaward. The indirect costs charged by a subaward recipient are not limited by this exception.
Multiply the result (MTDC base) by the appropriate F&A cost rate to find the F&A cost amount.
When completing the Facilities Costs Page of a CIRM research application package, specific rates should be applied to Category A and Category B(1) (see worksheet with breakdown of rates).
Projects that utilize space in the CIRM funded facility should exclude Category B(1) rates from the CIRM application