Overview of F&A Costs
Baylor's Facilities and Administrative (F&A) costs are those institutional research
infrastructure costs that cannot be easily attributed to an individual project or monitored
on an individual basis. Such costs include building and equipment use, operations, maintenance,
utilities, general departmental administration, telecommunications, library resources, and
capital improvements. F&A costs are actual expenses incurred by the University in support of
its institutional functions (e.g., sponsored research or education/training).
Baylor University negotiates its F&A Rate Agreement with the Department of Health and Human Services
(our “cognizant agency”) and currently has two predetermined rates:
- On-campus: 38.5% MTDC
- Off-campus: 15.6% MTDC
On-Campus Rate - The current on-campus federally negotiated indirect cost rate applies
to all proposals including those submitted to non-profit, for-profit, state and federal entities.
The negotiated approved rate is 38.5% of modified total direct costs (MTDC).
Modified total direct costs consist of all salaries and wages, fringe benefits, materials, supplies,
services and travel for each award. Additionally, the first $25,000 of each subgrant and/or subcontract,
regardless of the period covered by the subgrant and/or subcontract, is also included in the calculation of MTDC.
Modified total direct costs excludes equipment, capital expenditures, charges for patient care, tuition remission,
rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and/or
subcontract in excess of $25,000.
Off-Campus Rate - Application for the off-campus indirect cost rate must be approved by the Office of the
Vice Provost for Research for each proposal. The current off-campus federally negotiated indirect cost rate applies
to all proposals submitted to non-profit, for-profit, state and Federal entities. If approved by the Office of the
Vice Provost for Research, the current rate of 15.6%, can be used. Rates on an individual project can not be split
between on- and off-campus rates.
Accepted Deviations from the Negotiated F&A Rate
The University honors a sponsor's written policy on allowable F&A rates. For example, many training grants
limit F&A costs to 8% MTDC and many foundations limit F&A costs to 10% of total direct costs. In such
documented cases, the OSP will apply the allowed F&A rate instead of the University's federally negotiated rate.
For application guidelines that are silent on F&A, the OSP will apply the appropriate federally negotiated rate.