Facilities and Administrative Cost Recovery Rates

F&A cost is not charged on equipment, alterations, renovations, fellowships, scholarships, rental of off-site facilities, patient care, and subaward (educational institutions and non-profits) amounts above the first $25,000.  F&A is charged on the full amount of independent consultant and contractor subcontracts.  See Purchasing Department for contracts for professional services

Application of the Facilities & Administrative Rate

The correct F&A rate should be determined at the time of proposal preparation. UAH has five F&A rates (listed above) and they are for four different types of sponsored activity and Intergovernmental Personnel Agreements. Be sure you understand the nature of the sponsored activity before finalizing the proposal budget.

The majority of UAH’s sponsored project activity is “research,” followed by “other sponsored activities” and “instruction.” The definition of sponsored activity types is taken from OMB Uniform Guidance (2 CFR 200), “Cost Principles for Educational Institutions.”

Sponsored Research means all research and development activities that are sponsored by Federal and non-Federal agencies and organizations. This term includes activities involved in the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.

Other Sponsored Activities means programs and projects financed by Federal and non-Federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects and community service projects. May include special circumstances.

Sponsored Instruction and Training means specific instructional or training activity established by a grant, contract or cooperative agreement. (This is distinguished from the University’s regular instructional function which is not established by a sponsored program award.) May include special circumstances.

*Off-Campus Rate Currently, there are three types of off-campus rates applicable to Organized Research projects conducted in facilities not owned by UAH. An off-campus rate of 26% will apply to all activities performed outside the commuting area of UAH (>50 miles). An off-campus rate of 27.5% will apply to all activities performed within the commuting area of UAH (<50 miles). An off-campus rate of 28% will apply to all activities funded by DOD agencies and performed within the commuting area of UAH (<50 miles).  For projects that are not Organized Research, there remains a single off-campus rate of 26% Modified Total Direct Cost (MDTC).

In order for a project to be considered off-campus, the following qualifications must be met:

1. The PI will be away from his or her campus facilities (i.e., office and laboratory) for a minimum of three consecutive months.
2. The PI will be performing work in accordance with the statement of work of the sponsored project while at the off-campus location.

Off-campus rates can only be used relative to the effort of a University employee. The performance of non-university personnel must be handled via a subaward to another institution or a consulting agreement. Subawards must include full on-campus F&A rates for the first $25,000 of a subaward and for the full amount of independent consultant and contractor subcontracts.  

Federal rates should be used with state and private sponsors and must be used if UAH will be a subcontractor on a federal prime award. Questions can be directed to your Contract Administrator or Contracts and Grants Coordinator.

Note: 27.5% is applicable because research staff and faculty have access to UAH Library.