What Are Facilities and Administrative Costs (aka indirect costs)?

Introduction

Facilities and administrative (F&A) are costs that are not readily assignable to any specific project. These types of charges include: costs for utilities, maintenance, space, equipment use, accounting, purchasing, personnel services, research administration, and library services.

F&A Reference Table

F&A rates for federal grants and contracts are negotiated with the federal government on a periodic basis. The current rate, base, and agreement date must be included on applications for federal funds, including proposals for subawards from other institutions applying for federal funding.

What rate should be used on a grant or contract?

For rates for instruction and other sponsored activities, please see UTHSC rate agreement.

UTGSM - Knoxville

The federal F&A rate for on-campus research at UT Graduate School of Medicine in Knoxville is 38.5% MTDC. The current agreement date is January 28, 2011. The off-campus rate is 22.3% MTDC.

Please see UTGSM rate agreement.

UTCOM-Chattanooga

There is not a currently negotiated federal F&A rate for research conducted in Chattanooga; so a "de minimus" 10% MTDC rate should be included on federal proposals.

*MTDC = Modified Total Direct Costs, which are calculated as total direct costs less equipment ($5,000 or more), patient care, student stipends and tuition remission, capital expenditures, rent, and that portion of any subcontract over $25,000.

**Off-campus locations include the VA Medical Center, LeBonheur Children's Hospital (unless the project is conducted in space rented by UT), St. Jude Children's Research Hospital, etc. For activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off-campus rate will apply. Grants or contracts will not be subject to more than one indirect cost rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project.

Private Sponsors

The F&A rate for private sponsors is 30% of Total Direct Costs as of 07/01/2017, unless the sponsor has a different published rate (e.g., American Heart Association allows 10%). However, if a private entity is the prime awardee on a federal grant and flows down some funds to UTHSC, the FULL FEDERAL RATE SHOULD BE USED.