Facilities and Administrative (Indirect) Cost Rates

Application of Facility and Administrative (Indirect Cost) Rates to DOD Contracts/Subcontracts: In accordance with DFARS 2231.303, no limitation (unless waived by the institution) may be placed on the reimbursement of otherwise allowable indirect cost rates incurred by an institution of higher education under a DOD contract awarded on or after November 30, 1993, unless the same limitation is applied uniformly to all other organizations performing similar work. It has been determined by the department of Defense that such limitation is not being uniformly applied. Accordingly, the following rates do not reflect the application of the 26% limitation on administrative indirect costs imposed by OMB Circular A-21.

Note: Base Apply the rate on the modified total direct costs (MTDC), which includes all salaries and wages, fringe benefits, materials, supplies, services, travel, subgrants and subcontracts up to first $25,000.00 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude any equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, fellowships, as well as the portion of each subgrant and subcontract in excess of $25,000.

Treatment of Fringe Benefits: Fringe Benefits are charged using the rate(s) listed in the Fringe Benefits rate table at (insert link here).

Fringe Benefits include: FICA, State Unemployment, Workers’ Compensation, Retirement and Life & Health Insurance, Life Insurance, Health Insurance, Leave Cash Outs, Sick Leave Pool Payments, Clinical Disability Insurance and Parental Leave Program.

Treatment of Paid Absences: Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages and are claimed on grants, contracts and other agreements as part of the normal cost for salaries and wages. Separate claims for the costs of these paid absences are not made.

Off-campus definition:For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), However, grants or contracts will not be subject to more than one F&A cost rate.  Therefore, the rate will be determined by how the majority of activity is performed under the project. (i.e. off-campus, in an REC or for Other Sponsored Activities), and that rate will apply to the entire project.

Equipment definition: On or prior to June 30, 2011, equipment means an article of nonexpendable tangible personal property having a useful life of more than one year, and an acquisition cost of $1,000 or more per unit. Effective July 1, 2011, the defined acquisition cost is $5,000.

The rates contained in this Agreement reflect the combined cost of the University of Florida and the University of Florida Research Foundation, Inc., and will apply to grants and contracts awarded to the Foundation (UFRF).