Understanding Facilities & Administrative (F&A) Costs at UCI

Supporting Research, Innovation and Economic Growth

In The Hands Of A Man There Is A Red Wooden Plate With The Inscription INDIRECT COSTS

What Are Indirect (F&A) Costs?

Facilities & Administrative (F&A) costs—also called indirect costs—are essential expenses that support research but cannot be directly assigned to a specific project. These costs ensure that faculty, researchers, and students have the infrastructure, compliance support, and administrative resources needed to conduct cutting-edge research efficiently and safely.

Why Are F&A Costs Critical?

Universities do not make a profit from research grants—they invest their own funds to support research infrastructure and compliance. F&A reimbursements:

Sustain essential research facilities such as state-of-the-art laboratories and high-speed computing systems.
Ensure compliance with federal, state, and institutional research regulations.
Support innovation and economic growth by providing the infrastructure necessary for breakthrough discoveries.
Train the next generation of scientists, engineers, and medical professionals by funding faculty salaries, lab resources, and student research opportunities.

F&A costs include:

  • Facilities Costs: Depreciation of buildings and equipment, capital improvements, utilities, operations and maintenance (O&M), and library resources.
  • Administrative Costs: Sponsored research administration, departmental and general administration, compliance with federal research regulations, and student services.

How Are F&A Rates Determined at UC Irvine?

Every 3 to 5 years, UCI submits an F&A rate proposal to the Federal Office of Cost Allocation Services (CAS), which audits UCI’s actual costs and negotiates the allowable reimbursement rate.

UC Irvine’s F&A rate covers:

  • Facilities: Building and equipment depreciation, operations & maintenance, and research library resources.
  • Administration: Sponsored research management, departmental administration, compliance with export control laws, research security regulations and human research protections.

Without F&A funding, universities would not be able to maintain laboratories, secure research data, or meet regulatory requirements necessary for federally funded research

Direct Costs vs. F&A Costs

Direct Costs: Salaries for researchers, lab supplies, travel, and equipment directly used for a specific research project. Indirect (F&A) Costs: Research facility maintenance, administrative support, regulatory compliance, & library services that benefit multiple projects.

57%

UC Irvine’s Current F&A Rate

How Are F&A Funds Distributed at UC Irvine?

F&A cost recovery is strategically reinvested into research infrastructure, academic support, and compliance initiatives.

  • 68% to Facilities & General Support: Covers research buildings, lab maintenance, utilities, UC system assessments, and debt service on research facilities.
  • 32% to Academic & Research Support: Funds research administration, academic units, compliance programs, and strategic research investments.

This ensures that every dollar of research funding is maximized to support innovation, faculty recruitment, and student research opportunities.

The Return on Investment (ROI)
of University Research

Investments in university research generate significant
economicand societal benefits:

Every $1 of federal research funding generates $8.50 in economic activity, creating jobs, startups, and technological advancements.

University research has led to breakthrough innovations such as MRI scanners, the internet, GPS, and life-saving medical treatments.

Research universities train the future workforce, preparing students for careers in science, technology, and healthcare.

The Consequences of Reducing F&A Support

Cuts to F&A cost reimbursements would directly harm research by:

  • Reducing the number of funded research projects, limiting innovation and discovery.
  • Increasing financial burdens on students as universities would be forced to cover costs through tuition hikes.
  • Delaying critical research due to lack of compliance support, lab maintenance, and administrative oversight.
  • Threatening safety and security in research labs by reducing funding for hazardous waste disposal, biosafety measures, and cybersecurity protections.

F&A Costs Research Costs

Federal research grants do not fully cover the costs of conducting research—universities like UCI invest millions of their own dollars to maintain research facilities and compliance systems. Without F&A reimbursements, universities could not sustain federally funded research programs.

F&A Cost Video Resources

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Additional F&A Cost Reimbursement Resources