2.3.6 Facilities & Administrative Costs (F&A, Indirect Costs, or Overhead)

Policy No: RESEARCH  2.3.6
Type of Policy: Administrative
Effective Date: November 2014
Last Revised: June 2015

Policy Owner: OSP
Policy Contact: Duane Hutchison, Executive Director, duane.hutchison@osp.gatech.edu

1. Policy Statement

It is the policy of Georgia Institute of Technology to recover Facilities & Administrative costs on all of its sponsored programs. When estimating the proposal cost of a sponsored activity, the appropriate Facilities and Administrative (F&A) rate is applied. This provides a means for Georgia Tech to recover the F&A (indirect) costs which are incurred by the total sponsored activity but which cannot be directly assigned to an individual project. Georgia Tech and GTRC negotiate Facilities & Administrative Costs rates for research performed by Resident Instruction with the Office of Naval Research which is the cognizant audit agency for the institution. Rates are based on an audited cost proposal. Facilities & Administrative Costs are consistently applied to sponsored projects in accordance with the requirements of the Uniform Administrative Requirements (2 CFR 200), Subpart E.


Types of Facilities & Administrative Rates
(a.k.a.: Overhead or Indirect Costs)
For current rates: www.osp.gatech.edu/rates/
Research Capped (Federal Grants and Non-DoD Contracts) Applies to all DoD contracts awarded before November 30, 1993, all Non-DoD Instruments, and all DoD Grants.
Research Uncapped (DoD Contracts & Industry Subcontracts under DoD) Applies only to DoD contracts awarded on or after November 30, 1993 in accordance with and under the authority of DFARS 231.303(1)
Industrial (Non-Federal, International, and Non-Georgia State and Local Government Entities) Applies to projects funded by for-profit entities and others that are not U.S. entities described in the General Exception.
Other Sponsored Applies to projects that benefit the public with activities other than research & development and instruction. Used for projects funded by the State and Local Government Entities in Georgia.
Instruction Applies to projects that primarily involve the delivery of educational programs; teaching.

Except as noted 2.5.3 below, any request to cost share F&A costs either fully or partially must be approved by the Executive Vice President for Research. A justification must be provided for consideration. Cost share request forms can be found at http://www.osp.gatech.edu/forms/costshareform.pdf.

2. Scope

This policy applies to all Georgia Tech Faculty and Staff.

3. Forms

Title Link
Cost Shate Request Forms http://www.osp.gatech.edu/forms/costshareform.pdf

4. Related Information

Resource Link
Current F&A Rates: http://www.osp.gatech.edu/rates/
Information on how F&A rates are calculated: www.cogr.edu
Information about Georgia Tech financial operations and F&A recovery: http://policies.gatech.edu/facilities-administrative-fa-cost-rates
F&A Rate Agreements for Current and Previous Years: http://grants.gatech.edu/main/policies-procedures-and-forms/facilities-and-administrative/

5. Policy History

Revision Date Author Description
12-31-2013 OSP Rev 1.0
11-20-2014 OSP Rev 2.0
06-03-2015 OSP Rev 3.0