Effective Date May 13, 2019

Last Review Date: September 2024

Indirect costs (IDC) are costs paid by sponsors to assist the university in supporting research. They represent the real costs for utilities, maintenance, libraries, staff support, and other research infrastructure. IDCs are reimbursements to the university for costs incurred. They are not prospective payments. The base for these rates is modified total direct costs (MTDC) for a grant or contract. MTDC includes salaries, wages and benefits, materials and supplies, services, travel and all other items. MTDC specifically excludes tuition remission, scholarships and fellowships, participant support costs, the amount of any subcontract that exceeds $25,000, equipment, capital expenditures, and rental costs.

The federal government has imposed arbitrary limitations on reimbursement for some elements that make up the basis for the IDC rate itself. Thus, the real IDC rate that would adequately support research activities is higher than that which the federal government permits for federal awards. This is not the case for other sponsors. In the case of grants or contracts directly from a federal agency or for grants or contracts where the ultimate source of funds is the federal government, the rate will be limited to negotiated federal rate.

There may also be instances where sponsors place additional limitations on reimbursement of indirect costs. In these cases, the Office of Sponsored Programs will normally accept the indirect cost reduction if the sponsor has an official written policy. The Senior Associate Provost for Research must approve all requests for full indirect cost waivers.

The off-campus rate will apply for all activities: a) Performed in facilities not owned by the institution and where these facility costs are not included in the F&A pools; or b) Where rent is directly allocated/charged to the project(s). Grants or contracts will not be subject to more than one F&A cost rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project.

The table below shows the rates that are to be applied.

The calculated fringe benefit rate on eligible salaries is 31.14 percent for all sponsors at all times.

Florida Tech’s Federal Colleges and Universities Rate Agreement