Facilities and administrative rates

After World War II when the federal government initiated a close partnership with universities in pursuit of the research enterprise, recognition was given to the infrastructure costs needed to support this expensive endeavor. These infrastructure costs became known as Facilities and Administrative (F&A) costs and are expressed in terms of a rate; that is the indirect costs of research divided by the direct costs of research. This F&A rate is applied to eligible direct costs and is the accepted sponsor method to reimburse universities for the indirect costs incurred with the research project. 

Components of published facilities and administrative cost rates

Administrative components detail

Comparison of organized research facilities and administrative cost rates (by category):
Administrative ComponentFY12FY13FY14-15FY18-19
General Administration 7.30% 7.30% 5.68% 5.68%
Departmental Administration 20.80% 20.80% 20.80% 15.42%
Sponsored Project Administration Administration 0.30% 0.30% 0.30% 4.9%
Total Administration 28.40% 28.40% 28.40% 26.00%