Allocation of F&A Costs


Pursuant to University Policy SR-07.01-10/17 (the “Policy”), the Facilities and Administrative Costs Rate (“F&A Rate”) are established periodically by the University’s cognizant agency. The F&A Rate collected on each Project is distributed throughout the University to the University’s benefit. The F&A Rate may be reduced or waived in the sole discretion of the Vice President of Research or his or her designee. These guidelines are meant to establish a procedure for distribution of the F&A Rate collected on research contracts and allow for a procedure to reduce or waive the F&A Rate in a consistent manner.


I. Definitions
a. The definitions created in the Policy are incorporated herein by reference
b. “Off-Campus” – A Project, or part of a Project, is considered to be performed off-campus if the activity is conducted at a location other than UWF's academic lands and the majority of the Facilities portion of F&A (indirect costs), e.g., operation and maintenance, depreciation or lease of buildings, equipment and improvements, and library associated with UWF's facilities, both owned and leased, is not applicable. If a Project is located in leased space and the lease is a direct charge to the Project, then the Project is considered off-campus; if the Project is not charged directly for the lease cost and the lease is a part of the F&A Rate, then the Project is considered on-campus. In other words, the classification of on- or off-campus is made solely for the purpose of applying the correct F&A Rate.
c. “Clinical Trial” – a research study in which one or more human subjects are prospectively assigned to one or more interventions (which may include placebo or control) to evaluate the effects of those interventions on health-related biomedical or behavioral outcomes.
d. "Project" refers to a Sponsored Research Revenue Generating Contract, as defined in University Policy P-15.01-09/14, not including collaborating entities.
e. “RSP” shall mean the Office of Research and Sponsored Programs of the University of West Florida.

II. Standard F&A Rates for UWF
a. There are three (3) standard F&A Rates at UWF: Off-campus, On-campus, and Clinical Trials Rates.
i. The current Off-Campus F&A Rate is 17.73%
ii. The current On-Campus F&A Rate is 41%
iii. The current Clinical Trials F&A Rate is 31%
iv. The Standard F&A Rates are established periodically by UWF’s cognizant agency, and this Section shall be revised as needed to provide updated F&A Rates.
v. In the sole discretion of the Vice President of Research and Strategic Innovation or his or her designee, the Vice President may establish a standard F&A Rate less than the Full F&A Rate for specific types of Projects if RSP finds that the standard rate for those types of Projects is less than the established F&A Rate. RSP must provide notice to the University of any standard F&A Rates established by this procedure.
b. Purpose. The On-Campus F&A Rate is the standard rate as negotiated by UWF for Projects and includes costs associated with using on-campus facilities, which significantly burdens UWF. The Off-Campus F&A Rate is the standard rate as negotiated by UWF for Projects, minus the costs associated with using on-campus facilities. The Clinical Trials Rate is established due to the competitive nature of Clinical Trials and the standard F&A Rate for most Clinical Trials.
c. F&A Rates for Projects Conducted Partially Off-Campus
i. UWF’s agreement with the DHHS provides that “For all activities performed in facilities not owned by the institution and/or to which rent is directly allocated to the Project(s), the off-campus rate will apply. Actual costs will be apportioned between on-campus and off-campus components. Each portion will bear the appropriate rate.”
ii. The criteria for assigning an off-campus indirect cost (F&A) rate to a Project or a portion thereof are as follows:
1. Project personnel who are directly charged to the Project must be working completely off-campus throughout the portion of the Project to which the off-campus rate is applied.
2. General Project administrative and financial support services, e.g. payment of salaries and expenses, will be provided; other University support services, such as the library, departmental research equipment, machine shop, or office space will not be provided.
3. For Projects conducted partially off-campus, the on- or off-campus determination shall be based on UWF portion of Project costs, not including costs of a collaborating entity.
iii. Grant or Contract Award (annual level) under $100,000 in Modified Total Direct Costs (MTDC): Projects of this size which are partially performed off-campus are not apportioned between their on-campus and off-campus components for F&A rate purposes; instead, either the on-campus or the off-campus rate will be used in its entirety. If 50% or more of the Project's Modified Total Direct Costs (MTDC) is to be expended on campus, the entire Project is charged the on-campus F&A rate. If 50% or more of the MTDC is determined to be off campus, the entire Project is charged the off-campus F&A rate.
iv. Grant or Contract Award (annual level) of $100,000 or more in Modified Total Direct Costs (MTDC): For Projects of this size which are partially performed off-campus, MTDC is apportioned between on-campus and off-campus components for F&A rate application purposes when the lesser component is 20% or more of the MTDC of the Project. However, if 80% or more of the Project’s MTDC is determined to be on-campus, the entire Project is charged the on-campus rate. If 80% or more of the MTDC is determined to be off-campus, the entire Project is charged the off-campus rate.
v. The final determination on which F&A Rate is applicable to the Project is to be determined by the Vice President of Research or his or her designee.

III. Procedures for Reduction or Waiver of F&A Rates
a. Pursuant to University Policy, the Vice President of Research and RSP are solely responsible for negotiation of reduction or waiver of F&A Rates. The following criteria must be reviewed in making the determination:
i. The sponsor’s rate, as established by the sponsor’s written policy (not an email or other correspondence, but an official document indicating the rate);
ii. The standard F&A Rate in the field of the Project; and
iii. The benefit, academically or financially, to the University.
b. The Principal Investigator (PI) of a Project must provide any information to RSP that would provide information regarding the above-referenced standards if the PI believes a reduction or waiver of the F&A Rate is necessary or recommended.
c. Upon receipt of a Project in which a waiver or reduction of F&A Rates is requested, RSP shall review the Project to determine whether any of the criteria in Section III.a. applies. Once a decision is made by RSP with regard to F&A Rates for the Project, RSP shall provide the reasoning behind its decision and the Project documents to the Vice President of Research for review. If the Vice President agrees with RSP’s decision, RSP shall notify the PI of the decision. If there is a disagreement between the Vice President and RSP, the Vice President shall confer with RSP and make a decision jointly.