April 10, 2018
UCSB has negotiated a new facilities and administrative (F&A) cost (indirect cost) rate agreement that covers the period of July 1, 2017 through June 30, 2021. The new agreement is found here. The on-campus organized research rate has increased to 54.0% for the period of July 1, 2017 through June 30, 2018 and will increase to 55.0% for the period of July 1, 2018 through June 30, 2020. Beginning on July 1, 2020, the rate will increase to 55.5% and the rate after June 30, 2021 will be provisional.
For additional F&A types (Instruction, Other Sponsored Activities, etc.) and their associated rates, please see the attached rate agreement.
As we were just recently notified of the rate change and are already into the FY2018 year, we are implementing the following process for the new rate agreement:
All new and renewal proposals submitted to Sponsor after April 9, 2018 must use the appropriate rate from the new indirect cost rate agreement for each budget period. If the indirect cost rate changes during the budget period, the appropriate rate should be applied for each portion of the budget period in accordance with the dates in the rate agreement.
For example #1, if a new on-campus research proposal is submitted that has a period of performance of July 1, 2018 through June 20, 2021, the 55.0% indirect cost rate will apply to the period of July 1, 2018 through June 30, 2020, and the 55.5% indirect cost rate will apply to the period of July 1, 2020 through June 30, 2021.
For example #2, if a new on-campus research proposal is submitted that has a period of performance of January 1, 2019 through December 31, 2022, the 55.0% indirect cost rate will apply to the period of January 1, 2019 through June 30, 2020, and the 55.5% indirect cost rate will apply to the period of July 1, 2020 through December 31, 2022.
Continuation and supplemental proposals should be budgeted at the same rate that applies to the current award. Similarly, current awards will be assessed the same rate as was used in the proposal.
If you have any questions, please contact your Sponsored Projects team. Posted 4/10/2018