F&A rate for proposals to State Agencies

Dear Colleagues:

Assembly Bill (AB) 20 required the Department of General Services (DGS) on behalf of the State of California to negotiate a model agreement with the California State University (CSU) and University of California (UC) System. As Sponsored Projects discussed during the most recent QRAM, the implementation of AB 20 will change UC’s approach to Facilities and Administrative (F&A) costs on State-funded projects.

The UC Office of the President in cooperation with the CSU system now requires the use of the following rate escalation for proposals submitted to State Agencies.

Unless a State Agency’s funding announcement includes a different F&A rate, or the funds are federal flow-through, UC Irvine must use the UCOP approved rate. Federal funds flowing through a State agency will use the federally negotiated rates. Proposals to California Institute for Regenerative Medicine and the California Energy Commission PIER and EPIC programs will use the rates published in the funding announcement.

For multi-year proposals, all budget years will include the F&A rate in effect for the initial budget year. Amendments to the award that includes additional money AND time is the same as a new agreement for the purposes of determining the appropriate F&A rate. As such, the F&A rate in the accompanying budget will be the rate in effect at the time the amendment is issued.

This guidance can also be found on the F&A informational website maintained by Sponsored Projects. If you have any questions or concerns, please feel free to contact me.

Regards,

Jeff Warner

Supervising Principal Contract and Grant Officer