New research-related facilities and administrative rates take effect Nov. 19

November 10, 2022

A newly approved set of rates for facilities and administrative (F&A) costs will take effect Nov. 19.

These are the costs incurred to conduct research and other sponsored program activities that cannot be allocated to a specific project. Updated F&A rates include changes to research and instruction rates. A breakdown of the new F&A rates and changes are below:

• Research rate will increase from 55% to 57%.
• Instruction rate will decrease from 54% to 50%.
• Other sponsored program rate remains unchanged at 38%.
• Off-campus rate remains at 26%.

The increased research rate will not affect active research awards (and associated subcontracts) and pending proposals. The decreased instructional rate will be implemented retroactive to July 1, 2022. 

The new rates will be implemented on proposals or resubmissions beginning on or after Nov. 19. All pending proposals submitted to sponsors before that date will use the old rates or the rates proposed in the budget. This will apply to re-budgets of these proposals but not resubmissions. 

F&A costs are recovered by charging the F&A rate on a percentage basis to specific modified direct costs. Funds recovered are allocated to the general fund to cover research infrastructure investments as well as the costs already mentioned. The research F&A rate can generally be expected to generate between $1 million and $1.5 million per percentage point annually once fully implemented. 

Activities typically covered by F&A include facility costs such as building and equipment usage, utilities, and operating and administrative costs such as departmental administrative costs, central support services and research administration costs. An F&A cost explainer video has been created by the American Association of Universities to enhance understanding of the real costs of conducting research and the critical role that F&A plays in maintaining a strong university research enterprise.

An FAQ about the updated and existing rates is available on the Sponsored Program Services F&A Resources website.

Questions regarding the implementation of the new rates can be directed to Ken Sandel (sandel@purdue.edu), senior director of Sponsored Program Services.