OSP News

The university has just completed negotiations with DHHS on a new 4-year F&A rate agreement. The agreement, dated November 27, 2020, establishes the rates shown below. New rates go into effect on 7/1/2021 and will apply through the end of FY24, and then continue to be used after that date until a new rate agreement is established.

MTDC (Modified Total Direct Costs) means all costs except equipment (stand-alone items with a useful life of a least 1 year and a unit cost of at least $5,000); capital expenditures (alterations and renovations); patient care costs; tuition; scholarships and fellowships; rental of off-site facilities; participant support costs; and subaward costs in excess of $25,000.

Please see the rate agreement for additional information about on-campus/off- campus designations and the components of the F&A rate.

Implementation

New proposals

Investigators should begin using the new rates in proposals expected to have a start date on or after 7/1/2021. For example, if proposing work that runs 7/1/2021 – 6/30/2022, use 57.5%.  If proposing work that begins May 1, 2021 and runs through April 30, 2022, use 56% for May and June 2021, and 57.5% for July-April.

New or competing continuation proposals submitted but not yet funded

OSP will work with sponsors to obtain the new F&A rate whenever possible. However, if we cannot obtain additional funds, direct costs will be protected and will not be reduced to cover the increase in F&A rate, unless it is required by a sponsor.

Currently active projects

These projects will continue to be charged their current rate, as proposed and awarded, until the next competitive segment or other natural break point.

If you have questions, please contact your department’s sponsored program officer.