Office of Sponsored Programs
The Ohio State University


For an item to be considered equipment, it must meet all three of the following criteria:

  • Cost $5,000 or more
  • Have a useful life of at least one year
  • Be stand-alone and function independently

Some replacement parts and fabricated equipment are treated as exceptions to the standard definition of equipment. Consult a sponsored program officer for additional information. Anything that does not meet the criteria for equipment should be budgeted in the supplies category.

If a project recovers F&A costs at the appropriate negotiated rate, e.g., 56% of modified total direct costs (MTDC) for on campus research and development projects, equipment is excluded from the MTDC base and from F&A charges. If the sponsor pays less than the appropriate negotiated rate, then the F&A rate is applied to all costs, including equipment (unless specifically prohibited by sponsor policy).