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New Facilities and Administrative (F&A) Cost Rates for Sponsored Projects

Drexel University has recently concluded negotiations with the US Department of Health and Human Services’ Division of Cost Allocation (DCA) concerning its F&A (indirect cost) rate.  The result is the approval of new F&A rates for Drexel University’s sponsored projects for the next three fiscal years beginning July 1, 2014.  The new rates are the outcome of a detailed analysis of Drexel’s support of sponsored projects, including costs related to buildings, utilities, equipment, operations and maintenance, and administration.  The federal government considers these expenses when permitting the University to recover costs that cannot easily be assigned to specific projects.  These costs are charged on an average basis to all sponsored projects.  It is important to note that the final approved rates are less than the University’s actual overhead costs due to a regulatory cap on administrative expenses of 26 % as well as negotiations between the University and the federal negotiators regarding facility costs.

The new approved rates are:

On-Campus
F&A Cost Rates
Off-Campus
F&A Cost Rates
Research
7/1/2014-6/30/2017

56.50%

26.0%

Instruction
7/1/2014-6/30/2017

43.0%

26.0%

Other Sponsored Programs
7/1/2014-6/30/2017

36.0%

26.0%

Intergovernmental Personnel Agreement
7/1/2014-6/30/2017

8.5%

8.5%

Administration of Current Awards

All currently funded projects will remain at their awarded F&A rate  until they are competitively renewed.

Status of Pending Proposals Submitted to a Granting Agency

DCA will notify the appropriate federal fiscal and administrative offices of our new F&A rate.  New awards made to Drexel with an effective date of July 1, 2014 or later will utilize the proposed rates unless the project can bear the new rate.  

Proposal Budget Preparation

Effective immediately, proposal budgets with project start dates of July 1, 2014 or later should be prepared and submitted using the new rates.

Sponsors may request revised budgets for new and competing renewal proposals submitted prior to the issuance of this guidance.  F&A costs for these revised budgets will be calculated using the same budgeting principles described previously. 

Funding requests for non-competing continuations and incrementally funded projects will utilize the F&A rates applied to the original award. Supplemental funding issued after July 1, 2014 will use the new rates.

Rate Types

F&A rates are provided for research, instruction, other sponsored activities and intergovernmental personnel agreements both for on and off-campus programs.  

Organized Research Projects Organized research project rates apply to research activities intended to increase knowledge or understanding of the subject studied.  These projects should be budgeted using the Organized Research rate.

Instruction and Training Projects  - Proposals requesting funds for academic year training programs, summer institutes or the development and introduction of new or expanded courses and similar instruction-oriented activities should request F&A costs using the Instructional rates.

Other Sponsored Projects - Other sponsored project rates apply to those programs that are neither research nor instructional in nature but are for support of outreach, service or technical assistance programs.  These projects should be budgeted using the Other Sponsored Projects rate.

Off-campus Rates - The off-campus rate applies to projects where more than 50% of the project is performed off campus and in a facility not owned by the University.  A single F&A rate (either on campus or off campus) must apply to each grant or contract.

Questions may be directed to your Program Administrator or to Julie Ford at x2947 or jjf47@drexel.edu.