On-campus Research Rate will increase to 56% beginning July 1, 2018
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New F&A Rates Approved

On-campus organized research rate increases to 56% beginning July 1, 2018 

In November 2016, U-M completed negotiation of a new Facilities & Administrative ("F&A") rate agreement for federally sponsored programs. 

Got it!  Help me apply new rates!

Research administrators who are ready to update budgets can find information on applying new rates on the Office of Research and Sponsored Projects (ORSP) website. (Scroll down and look for the light turquoise box  on the lower right, containing options for Applying New Rates.) Adhere to your department for specific guidance or policies.

...Slower, please. What are F&A Costs?

Facilities & Administrative costs (also known as F&A or indirect costs or IDC) are real costs of university operations that are not readily assignable to a particular project. 

For the fiscal year ended June 30, 2016, the university received $256 million in indirect cost recovery.

How is the F&A Rate Determined?

The Department of Health and Human Services (DHHS) is the cognizant agency that negotiates predetermined rates with universities on behalf of the federal government for all of its agencies, in accordance with the Uniform Guidance Cost Principles 2 CFR 220 (formerly A-21).

U-M recently completed negotiation of a new four-year rate agreement that continues our existing rates through June 30, 2018, and provides for an increase in the rate for on-campus organized research to 56.0 percent for the period July 1, 2018, through June 30, 2020.

References and Resources

Current and previous rate approvals can be found on the Finance-Sponsored Programs website.

A summary of federal F&A rates (under current and new agreements) appears below and on ORSP's Indirect Cost Rates web page.

Type of Sponsored Agreement *

Predetermined Rate
July 1, 2016 -
June 30, 2018

Predetermined Rate for
July 1, 2018 -
June 30, 2020








 Other Sponsored Activity




 All Programs
 (including research)



* Excludes sponsored agreements for the State of Michigan
** Provisional from July 1, 2020, until next rate agreement is executed.


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