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  Home > Forms and Rates
F&A Rates

For more information, view the Understanding F&A Costs brochure.

03/08/17 F&A rate agreement (Includes FY17 & FY18 fringe benefit rates)

06/06/16 F&A rate agreement (Includes FY16 & FY17 fringe benefit rates)

09/28/15 F&A rate agreement (Includes FY15 & FY16 fringe benefit rates)

04/14/15 F&A rate agreement (Includes FY15 & FY16 fringe benefit rates)

05/29/14 F&A rate agreement (Includes FY14 & FY15 fringe benefit rates)

01/07/13 F&A rate agreement (Includes FY13 & FY14 fringe benefit rates)

04/20/12 F&A rate agreement (Includes FY12 & FY13 fringe benefit rates)

12/08/11 F&A rate agreement (Includes FY11 & FY12 fringe benefit rates)

04/19/11 F&A rate agreement (Includes FY11 & FY12 fringe benefit rates)

03/23/10 F&A rate agreement (Includes FY10 & FY11 fringe benefit rates)

01/15/09 F&A rate agreement (Includes FY09 & FY10 fringe benefit rates)

01/29/08 F&A rate agreement (Includes FY08 & FY09 fringe benefit rates)

10/30/07 F&A rate agreement document

05/04/07 F&A rate agreement (Includes FY07 & FY08 fringe benefit rates)


New F&A Rate Agreement Signed


Sponsored Projects Administration (SPA) is pleased to announce the successful negotiation of a new four-year F&A (“indirect cost”) Rate Agreement, dated September 28, 2015, with our federal cognizant agency (DHHS, Cost Allocation Services).  The new rates negotiated for Organized Research and Hormel will improve the reimbursement the University receives for its F&A costs incurred during the performance of work on sponsored agreements. David Hagen, SPA’s Associate Director responsible for F&A Cost Analysis, estimates these new rates will yield an incremental $7.5 million in additional F&A recovered over the life of the agreement.

The new rates are shown in the chart below. All rates are effective from FY 16 through FY 19, and will continue to be used after the end of FY 19 until a new rate agreement is established. All rates are based on Modified Total Direct Costs (MTDC) unless otherwise noted.



Fiscal Year(s)



 Organized Research

 2016 - 2017











 Other Sponsored Activities

 2016 - 2019




 2016 - 2019



 Hormel Institute





 2017 - 2019



 Department of Defense Contracts

 2016 - 2019



 Industry-Funded Clinical Trials

 (Total Direct Costs)






New and Renewal Proposals

Principal Investigators (PIs) and their staff are encouraged to begin using the new rates in new and renewal (competing continuation) proposals immediately, including using the stepped increases in FY 18 and FY 19 for the portion of the budget year after the change in rate occurs.  



Example: a proposal that includes a budget period of 1/1/17-12/31/17 will use 52% MTDC for the first six months of the budget year and 53% for the remaining months of that budget year.  For the following year (1/1/18 – 12/31/18), the proposal would use 53% MTDC for the first six months and 54% MTDC of the remaining six months.   For any additional budget periods, the rate would stay at 54% MTDC.  

If a budget period covers two different F&A rates, the F&A calculation is made by dividing the total modified direct cost for that budget period into months, and then multiplying the number of months covered by the first rate followed by the number of months at the second rate and adding the  two together.  An explanation should be entered into the budget justification for how the calculations were performed.

Competitive segments (i.e., the period of years approved by the funding agency at the time of the award, usually three to five years) that extend beyond FY 19 should also reflect these rates. To ease the transition for proposals currently in later stages of development, SPA staff will temporarily continue to endorse proposals reflecting either the new or the former rates; however, all proposals submitted to SPA on or after November 2, 2015 must use the new rates. 

New and Renewal Proposals Submitted but not Yet Awarded

To ensure that direct costs available to PIs are not adversely impacted by this rate change, awards received in response to previously submitted new or renewal proposals will, when necessary, be accepted using the F&A rate contained in the submitted proposal. SPA will, however, work with agencies to increase F&A costs in the future budget years to reflect these new rates wherever possible.  

Existing Awards and their Non-Competitive Proposals

All existing awards and their associated non-competitive continuation proposals will continue to use the F&A rate in effect at the time of their initial award (or most recent renewal) throughout the remainder of their competitive segment. This is necessary because governmental regulations require fixed rates over the life of a sponsored agreement and define “life” as each new competitive segment.

To illustrate, new or competitive renewal on-campus research proposals submitted on or after November 1, 2015 must use the 52.0 percent rate in for budgets in FY16 and FY 17, but must use the 53 percent rate in FY18 and 54 percent in FY 19. However, non-competitive research continuations will continue to use the current 52.0 percent rate included in their most recent new or renewal award until the end of their multi-year project period. If a renewal proposal is then submitted for that project, it should use the new stepped rates.  In most cases, proposals for additional (supplemental) funding on existing projects will also use the new stepped rates. If you have any questions about which rate is appropriate for your proposal or your award, please contact your SPA Grant Administrator or call the SPA Help Desk at 612-624-5599. 

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