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Indirect Costs and Rates FAQs

What is the current IDC (F&A) rate?

The current IDC (indirect cost) rate for the University is dependent upon the type of research being performed and the location of the majority of the work being performed. A link to the current IDC rates for the University can be found by clicking here. This link also provides information on the types of costs our IDC reimbursement covers

Do I have to use this rate?

It is Drexel’s policy to request the appropriate federally negotiated indirect cost rate in the proposal budget for all sponsored projects regardless of funding source unless a sponsoring agency's written policy will not permit full recovery of indirect costs.

Can I request to use a lower rate?

An indirect cost waiver/reduction is an institutional agreement that the university will charge indirect costs at a rate lower than its federally-negotiated rate agreement stipulates. Waivers, while rare, may be requested by the Principal Investigator with the approval from the appropriate Dean/Director’s Office during the proposal development process. On a case-by-case basis, the final review and approval/disapproval of the waiver request will be made in the Office of Research before the proposal is submitted.

But our rate is too high, and it makes my proposal not competitive

Unacceptable reasons for an indirect cost waiver include, but are not limited to:

  • To increase the competiveness of the award
  • The PI did not submit the proposal through the proper method, and they have already ‘agreed’ to a lower IDC rate.
  • More info on what is and is not acceptable reasons can be found at the following link:
    Understanding Facilities and Administrative (Indirect) Costs

But I am doing the work off campus

If more than 50% of the work performed by Drexel on a project is conducted off-campus, the off-campus rate will apply to the entire project (currently 26%). The “off-campus” designation usually applies to grants in which rent is paid directly by the sponsor. The “off-campus” designation DOES NOT refer to field work. Please use the following link for a more detailed explanation: Understanding Facilities and Administrative (Indirect) Costs