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ARCHIVAL INFORMATION
For current rates, click: Current Indirect Cost Rates.
Note:New Rates Negotiated
Please read the above article if you are preparing a proposal for FY 2000 and beyond ( start date: July 1,1999 and after). If you are submitting a proposal for incremental funding, contact your DRDA project representative.
The full recovery of indirect costs is expected on all grants or contracts, up to the level allowed by the sponsor's written policy. The indirect cost rate applicable to all research proposals submitted to federal agencies that anticipate funding in FY 1999 is 52.5%. If you have any questions about any rates shown below, contact the Division of Research Development and Administration at 764-5500.
| Fiscal 1999 | ||
|---|---|---|
| Type | On-campus | Off-campus |
| Research:Federal | 52.5% | 26.0% |
| Industrial Sponsors | 56% | 30.0% |
| Instruction | 54.0% | na |
| Other Sponsored Activity | 30.0% | na |
| Fiscal 2000 (7/1/99--6/30/2000) | ||
|---|---|---|
| Type | On-campus | Off-campus |
| Research:Federal | 52% | 26.0% |
| Industrial Sponsors | 56% | 30.0% |
| Instruction | 54.0% | na |
| Other Sponsored Activity | 30.0% | na |
| Fiscal 2001 (7/1/2000--6/30/2001) | ||
|---|---|---|
| Type | On-campus | Off-campus |
| Research:Federal | 51.5% | 26.0% |
| Industrial Sponsors | 56% | 30.0% |
| Instruction | 54.0% | na |
| Other Sponsored Activity | 30.0% | na |
| Fiscal 2002 & 2003 (7/1/2001--6/30/2003) | ||
|---|---|---|
| Type | On-campus | Off-campus |
| Research:Federal | 51% | 26.0% |
| Industrial Sponsors | 56% | 30.0% |
| Instruction | 54.0% | na |
| Other Sponsored Activity | 30.0% | na |
The indirect cost rates for federal projects and projects sponsored by industry (at the 56% rate) are applied to a modified total direct cost (MTDC) base. The rates are applicable to all direct costs with the exception of the following:
(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) 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.
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:
| Michigan Memorial Phoenix Labs | 41.0% |
|---|---|
| Unit for Laboratory Animal Medicine (ULAM) | 33.0% |
| ULAM Quality Assurance Fee (non-federal projects using Medical School space) | 45.0% |
The 33% rate for the Unit for Laboratory Animal Medicine 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 33% rate for ULAM animal care 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.
Please read further for more information on non-federal indirect cost rates and other special considerations.
(Updated 2/5/99)