F&A Cost Rates

Implementation of New Facilities and Administrative (F&A) Rates - Effective July 1, 2023

DHHS agreement dated July 28, 2023 replaces DHHS agreement dated March 14, 2018. 

New Facilities and Administrative (F & A) Cost Rates 

Negotiated Federal F & A Cost Rates*

7/1/23 - 6/30/24**

Organized Research - On Campus

57.5% MTDC

Organized Research - Off Campus

26.0% MTDC

Instruction - On Campus

45.0% MTDC

Instruction - Off Campus

26.0% MTDC

Other Sponsored Activities - On Campus

32.0% MTDC

Other Sponsored Activities - Off Campus

17.0% MTDC

* Facilities and Administrative Cost Rates are "Predetermined for the period July 1, 2023 through June 30, 2024," and provisional thereafter. 

**From 7/01/24 until amended, use the same rate and conditions as those cited for fiscal year ending June 30, 2024.

 

Previously Negotiated F&A Cost Rates from the DHHS agreement dated March 14, 2018 are Included in the chart below for historical purposes.

Negotiated Federal F & A Cost Rates *

7/1/13 -
6/30/15

7/1/15 -
6/30/16

7/1/16 -
6/30/18

7/1/18 -
6/30/19**

Organized Research - On Campus

52.0% MTDC

54.0% MTDC

55.0% MTDC

55.50% MTDC

Organized Research - Off Campus

26.0% MTDC

26.0% MTDC

26.0% MTDC

26.0% MTDC

Instruction - On Campus

58.5% MTDC

51.0% MTDC

51.0% MTDC

51.0% MTDC

Instruction - Off Campus

26.0% MTDC

26.0% MTDC

26.0% MTDC

26.0% MTDC

Other Sponsored Activities - On Campus

44.0% MTDC

51.5% MTDC

51.5% MTDC

51.5% MTDC

Other Sponsored Activities - Off Campus

18.0% MTDC

10.60% MTDC

10.60% MTDC

10.60% MTDC

* Facilities and Administrative Cost Rates are "Predetermined for the period July 1, 2013 through June 30, 2019," and provisional thereafter. 

**From 7/01/2019 until amended, use the same rate and conditions as those cited for fiscal year ending June 30, 2019.

 

Other F & A Cost Rates Approved for Use by UCOP

Agricultural Marketing Order Boards - California Dept. of Food and Agriculture (CDFA) Marketing Orders and Marketing Agreements are not required to apply the UC Rate for the indirect costs that would normally be applied to State of California funded projects - per this link. (Instead, use IDC Rate Exception #131503.)

For non-CDFA Marketing Orders that restrict indirect costs to zero, please submit indirect cost rate exception requests to SPA. UCOP will review each on a case by case basis.

Note: Agreements from an agricultural marketing board established by the USDA are not covered by IDC Rate Exception 131503 (Instead, use F&A agreement, as prescribed in 2 CFR 200.414.)

0%

California Department of Food and Agriculture (excluding Marketing Orders and Marketing Agreements) - Please refer to All other State of California Agencies section below. 

 

All other State of California Agencies - For all State of California agreements, except the CDFA Marketing Orders and Marketing Agreements (see above), and absent express approval from UCOP's CFO, a UC Rate of 30% of the federally-defined Modified Total Direct Costs (MTDC) should be applied to funding through June 30, 2023; and that rate will increase gradually increase until it reaches 40% MTDC, as illustrated in the column to the right, and such 30% MTDC rate should be used for all proposed budget periods. (The increased rate would also apply to previously unencumbered funds added by amendment to existing projects after this date.) Link.

For "training" activities, a reduced rate of 8% MTDC will be accepted, consistent with NIH's F&A limitation for institutional training grants.  This rate may be used for training grants that are in support of UC's eduational mission, and does not apply in instances where a UC campus provides training to a state agency.

The authority to approve indirect cost exceptions for State of California agreements remains with the Office of the President.  Regardless of a published policy by a State of California agency, recovery less than the UC Rate, or the rate specified in CDFA-specific guidance, requires an indirect cost exception under the Chancellor Approval procedure (i.e., requests must include a clearly stated rationale for a reduced indirect cost recovery and must document approval by the Chancellor or designee).  No exception will be considered without following these special procedures and without the consent of UCOP's CFO - per UCOP Guidance Memo (RPAC-17-07) RPAC-17-07.

Proposals to California Institute for Regenerative Medicine and the California Energy Commission PIER and EPIC programs will use the rates published in the funding announcement. Unless a State agency program has a published F&A rate policy stated in a funding announcement or federal regulation (applicable to federal flow-through funds), UCR must use the UC Rate.

EFFECTIVE PERIOD

On-Campus

Off-Campus

July 1, 2019 through June 30, 2023

30% MTDC**

25% MTDC**

July 1, 2023 through June 30, 2025

35% MTDC**

25% MTDC**

July 1, 2025 and beyond

40% MTDC**

25% MTDC**

** The F&A rate utilized in the proposal will remain in effect for the life of the project (i.e., all years will include the F&A rate in effect for the initial budget year).

For example, a proposal submitted for a 5 year on-campus project with a start date of July 1, 2019 should apply the 30% MTDC indirect cost rate for all five budget years.

Note:  An amendment to an award that includes additional money and time is the same as a new agreement for the purposes of determining the appropriate F&A rate. As such, a new budget with the appropriate indirect cost rate in effect at the time of the amendment must be provided to the State agency.

Clinical Trial - As an exception to recovery of our Federally-negotiated F&A cost rate applicable to organized research, costs applicable to research at UCR which meets the definition of a clinical trial (i.e., "the controlled, clinical testing in human subjects of investigational new drugs, devices, treatments or diagnostics, or comparisons of approved drugs, devices, treatments or diagnostics, to assess their safety, efficacy, benefits, costs, adverse reactions, and/or outcomes"), and for which is not funded with Federal funds, are subject to a 26% indirect cost rate on a total direct costs basis. Link

26% TDC