Indirect costs (also known as Facilities and Administrative, F&A, or overhead costs) are those costs that are incurred for a joint purpose throughout the University and therefore cannot be readily identified with a specific sponsored project or program, an instructional activity, or any other institutional activity.
The University has a federally negotiated indirect cost rate agreement for both on-campus and off-campus activities that should be included in all sponsored project or program proposal budgets as applicable. These rates can be reviewed on our Rate Sheet.
The proposal budget must reflect the on-campus indirect cost rate unless significant portions of the University research is to be performed off campus. Please review the University’s Off Campus F & A Rate Policy for more information on the application of the appropriate use of the off-campus rate.
Examples of indirect cost bases in which the indirect cost rates are applied include the following:
- Modified total direct costs (MTDC) – This base is used when the sponsor accepts the University’s federally negotiated rate. This rate is applied to all budget line items except equipment items over $5,000, tuition and subawards beyond the first $25,000 (for each subaward).
- Total direct costs (TDC) – This base is used when the sponsor does not accept the University’s federally negotiated rate. The indirect cost rate permitted by the sponsor is applied to all budget line items with no exclusions. Full tuition rates should be used in this instance.