The new F&A rates are as follows for FY24-27:

• Sponsored Research, on-campus: 49.0% of Modified Total Direct Costs* (MTDC)
• Sponsored Training/Instruction, on-campus: 48.0% of MTDC
• Other Sponsored Activities, on-campus rate: 33.0% of MTDC
• All activity types, off-campus rate**: 26.0% of MTDC

*Modified Total Direct Costs: These costs consist of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.

**Off-campus activities are defined as "projects conducted in facilities not owned or operated by the University, which include charges for facility rental as a direct expenditure and for which more than 50% of the project salaries and wages are for effort conducted in the rental facility.

The Facilities and Administrative (F&A) rate is negotiated between the University of Oregon (UO) and the Department of Health and Human Services (DHHS) Cost Allocation Services. Before negotiations began, UO submitted a proposal documenting the actual costs incurred during FY19 (July 1, 2018 through June 30, 2019) for such items as space, utilities, general purpose equipment, administrative salaries and OPE, etc. Costs in these categories have increased significantly since our previous rate negotiations. Even with the current rate increases, UO will not be fully recovering the costs for these items.

Yes, the new rates apply to all extramurally sponsored projects.

The new rates should be used immediately.

Unless sponsor policies state otherwise, supplemental funding will be considered new funding. Any application for new uncommitted funding, such as a supplement, should incorporate the new rates. Exception: The National Science Foundation has a policy of funding supplemental support using the negotiated indirect cost rate(s) approved at the time of the initial award, so supplemental proposals to NSF should use the original agreement's rates. See NSF PAPPG Chapter X.D.1.d.

If you have questions, please contact the SPS Pre-Award Team.

Competing renewal applications should use the appropriate F&A rate specified in the new rate agreement, regardless of the rate that was applied to the previous segment. You should determine when the new segment is expected to start and use the rate that is effective at the beginning of the budget period for that budget period.

For proposals submitted before the July 1, 2023 date and awarded after July 1, 2023, a sponsor may allow UO to apply the new F&A rate before the award is fully executed. Contact SPS for guidance and assistance.

F&A rates currently in effect on active awards will be used throughout the life of the award, per Uniform Guidance, Appendix III(7)(a):

"Federal agencies must use the negotiated rates in effect at the time of the initial award throughout the life of the Federal award."

The new rate will be used on all new awards received after July 1, 2023. For awards resulting from proposals submitted before the new rates went into effect, SPS can work with your unit and the sponsor to have the new F&A rates incorporated.