How To

Apply the F&A Rate to My Project's Budget

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.