Indirect Cost Rate Changes Effective July 1, 2020

This is a reminder that UCI’s federally negotiated indirect cost (Facilities and Administrative, F&A) rate for on-campus organized research will increase to 57% on July 1, 2020. The rate is in effect for the period July 1, 2020 through June 30, 2021, and will become the provisional indirect cost rate thereafter until a new indirect cost rate agreement has been negotiated with the Department of Health and Human Services (DHHS).

All awards with the current on-campus organized research indirect cost rate of 56% will be assessed the new rate of 57% on or after July 1, 2020, unless there is a restriction in the award that prevents future indirect cost rate increases. All new awards for on campus organized research with a start date on or after July 1, 2020 are subject to the new indirect cost rate, unless supported by an approved indirect cost waiver that provides for the assessment of a lower rate. Indirect cost rates will remain the same for off-campus organized research, clinical trials, instruction, and other sponsored activities.

The indirect cost rate for the State of California agreements will remain 30% through June 30, 2021. The Office of the President has decided to delay the July 1, 2020 indirect cost rate increase for State of California proposals and awards.

Current indirect cost rates and UCI’s federally negotiated indirect cost rate agreement can be found here: https://research.uci.edu/sponsored-projects/rates-fees/fa-cost-rates.html

If you should have questions regarding budgeting indirect cost rates in proposals, please contact your Contract and Grant Officer in Sponsored Projects Administration or Beall Applied Innovation https://research.uci.edu/sponsored-projects/about/staff-dept-assignment.html

If you should have questions regarding the assessment of the new on campus organized research indirect cost rate on new and existing awards, please contact the C&G Accountant responsible for your award https://www.accounting.uci.edu/cg/fund-assignments.html.

Nancy Lewis

Executive Director, Sponsored Projects