The negotiated Facility and Administrative rate (F&A) is applied based on the type of activity proposed and the location, on or off campus, or a combination to the following categories of sponsored projects described in RPH 13.2. These categories include:
Research
Instruction
Other Sponsored Activity
Animal Care
Non-Federal Clinical Trial Rate
F&A Bases
The F&A rate is applied to a base, i.e., a specified subset of project costs. The three types of bases include:
1. Modified Total Direct Costs (MTDC) Base
This is the most common base, and it includes all costs with certain exclusions. If a project is bearing the full negotiated F&A rate, that rate is always applied based on the MTDC base.
MTDC Exclusions:
Capital equipment
SLAC services
Tuition
Cost of renting/leasing project space or equipment
Portion of each subaward over $25K
Student aid support (stipends)
Patient care costs
Participant support costs
Animal care/VSC costs
Entire cost of renovation/construction projects over $50K
2. Total Direct Cost (TDC) Base
In this case, to calculate the indirect costs for the project, simply apply the F&A rate to all the direct costs in the proposed budget. This is usually the case when dealing with certain non-profit foundations that only allow a reduced indirect cost rate.
3. Other Modified Total Direct Cost Base
In some rare instances, a non profit foundation may not only require a reduced indirect cost rate but also certain exclusions from the direct cost total prior to applying the indirect cost rate.
New Proposals
The negotiated F&A rate(s) is used and applied to the appropriate F&A base.
Continuation Proposals
The awarded rate is fixed for the life of the project and is used in all continuation year proposals.
Competitive Renewal Proposals
The negotiated F&A rate(s) is used and applied to the appropriate F&A base.