[See also:More information on non-federal indirect cost rates ]

Applying Indirect Cost Rates

See the DRDA-net message on Using the New idc Rates

1. Permanent equipment items with a unit value of $5000 or more and a life expectancy of two years. Nonexpendable items valued at less than $5000 or with less than a two-year life expectancy should be budgeted as materials and supplies.
2. Indirect cost rate is applied to only the first $25,000 of each subcontract or subgrant.
3. No indirect cost recovery is allowed on costs for alteration or renovations of facilities included in a proposed budget.
4. Tuition charges are excluded from the base on which indirect costs are calculated. Budget proposals should use a modified total direct cost (MTDC) base that excludes tuition charges.
5. Patient care costs.
6. The direct and indirect costs associated with Specialized Service Facilities must be included in a composite charge which reflect the surcharges shown below. These composite service charges, in turn, are excluded from the modified total direct cost (MTDC) base. The negotiated indirect cost rates are not applicable to these charges.

Is it an Off Campus Project?
To determine whether a project qualifies for the off-campus rate, read the off campus definition.

Research Vessels
The indirect cost rate for research vessels is 25.0%.

Specialized Service Facilities
In determining the appropriate costs to budget for Specialized Service Facilities, the following surcharges should be applied to the direct costs:

The Unit for Laboratory Animal Medicine rate applies only to the animal care provided by ULAM and includes the daily per diem rate, animal treatment costs, and specialized services such as veterinary care, medical and surgical supplies, technical tests, and technical assistance. Animal care not provided by ULAM is treated as a routine direct expense and is subject to the prevailing indirect cost rate for the project.

The ULAM animal care rate also is applicable to nonfederal projects conducted outside the Medical School.

Animal purchases should be treated as normal operating expenses and should be included in the MTDC base on which indirect costs are assessed.

The 45% Quality Assurance Fee should be applied to both animal care and animal purchases for non-federal projects in the Medical School (or such projects that use Medical School space).

Cost-Sharing
If the University offers to cost share a portion of the direct costs of a project, the indirect costs associated with those direct costs may also be used for cost sharing. If the sponsor limits indirect costs, the difference between the full recovery of indirect cost and what is allowed by the sponsor may be shown as a University cost-sharing contribution.