Modified Total Direct Cost (MTDC)

MTDC (Modified Total Direct Cost) is the base to which F&A (indirect cost) rates are applied. The Uniform Guidance excludes participant support costs from the MTDC base and defines this base for sponsored projects awarded on or after December 26, 2014 as follows:

MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000.