Research@UIC > Grant & Contract Proposals > Preparing Budgets > Memorandum

Memorandum

We are pleased to report that our Facilities and Administrative (F&A) rate negotiations with the federal government are now complete for the period July 1, 2010 through June 30, 2013.  The final FY11 F&A rates have not changed from the provisional rates originally announced on July 2, 2010.  However, rates will increase in FY12 and again in FY13.
 
Occasionally, there has been concern voiced that a higher F&A rate will have an adverse impact on the competitive nature of a sponsored research application/proposal.  We wish to reinforce that this concern is unfounded.  The F&A rate is the federally endorsed mechanism used to reimburse the University for the infrastructure support costs associated with sponsored research and other sponsored projects.  Sponsoring agencies have established application guidelines that specify the inclusion of F&A costs as well as proposal evaluation guidelines that specify that panel reviewers are not allowed to include budget information (such as F&A rates) in their impact/priority score.

The new rates are shown below.   They are to be used immediately for all proposals and for new and competing renewals with project begin dates on or after July 1, 2011.

Final Chicago Campus F&A Rates for FY12 (July 1, 2011 through June 30, 2012)
On-Campus Organized Research: 59.0%
On-Campus Instruction: 43.6%
On-Campus Other Sponsored Activities: 36.0%
All Off-Campus Awards (Research, Instruction and Other Sponsored Activities): 26.0%

Final Chicago Campus F&A Rates for FY13 (July 1, 2012 through June 30, 2013)
On-Campus Organized Research: 59.5%
On-Campus Instruction: 43.6%
On-Campus Other Sponsored Activities: 36.0%
All Off-Campus Awards (Research, Instruction and Other Sponsored Activities): 26.0%

Awards with Project Start Dates Prior to July 1, 2011
Any federal award whose new or competitive segment began prior to July 1, 2011 and continues to be awarded by the sponsoring agency will retain its current rate until the completion of the current project segment, which includes each noncompetitive renewal and incremental budget period. These awards will not be impacted by the change in rates.

Awards with Project Start Dates of July 1, 2011 and Later
Research awards beginning in FY12 will be charged at a rate of 59.0% for FY12.  If awards continue beyond FY12, the rate will increase to 59.5% in FY13 and remain 59.5% for the life of the award.  Any award beginning in FY13 will be charged at a rate of 59.5% for the life of the award.  Should any federal award be issued which does not incorporate these new rates with the exception of agency mandated rates, please contact ORS for assistance.

New & Competitive Renewal Proposals Submitted On or After July 1, 2011
All new and competing renewal proposals must be submitted using these new rates.  For proposals with project begin dates on or after July 1, 2011 the budget should be calculated using the applicable rate for each budget year segment. For example, for a budget year beginning April 1, 2012, the budget should be calculated using an F&A rate of 59% MTDC for April 1 – June 30 and 59.5% MTDC for July 1 – March 31. 

The Office of Research Services (ORS) will be posting on its website, under the “Preparing Budgets” section, special budgeting instructions on how to apply these new F&A rates on grant proposals.   

Non-Competing Continuation Proposals Submitted On or After July 1, 2011
For the purpose of calculating F&A costs, all non-competing continuation proposals should use the applicable F&A rate in affect at the time of the parent award.

Please refer to the document FY11 F&A, Fringe Benefit and Tuition Remission Rates (PDF) for the detailed information necessary to apply the F&A and fringe benefit rates on sponsored project proposals. These documents are also available in the Chicago section of the Indirect Cost Rates (F&A) page of the OBFS Grants and Sponsored Projects Website.

Please distribute this information to those in your unit who work with F&A rates.

Please contact the following individuals if you have any questions.  Pre-award questions should be directed to Luis Vargas, Executive Director, ORS, at 312-996-2862 or at lrvargas@uic.edu .  General Post-award questions should be directed to Vanessa R. Peoples, Executive Director, Office of Grants and Contracts, at 312-996-3373 or at gcopost1@uillinois.edu.                    

Questions or concerns regarding F & A rates, fringe benefit rates, or costing issues should be directed to Michael Moss, Assistant Director of Costing and Analysis, at 312-996-0306 or mmoss2@uillinois.edu.