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Colleagues –

Current University policy on Facilities & Administrative (F&A) cost recovery for sponsored projects accommodates reduced or waived F&A for Non-Profit Sponsors when the sponsor has a published policy limiting F&A costs. The University, however, does not allow reduced or waived F&A for For-Profit Sponsors unless the sponsor is clearly funding a fellowship or graduate student training opportunity.

The University recognizes that many sponsors may request that we reduce or waive F&A not covered by this policy. It is important that the University limits reductions to F&A so that we recover the costs generated by supporting sponsored projects. In response, we developed a model that repackages our F&A costs in a more recognizable context and identifies components of our F&A rate in terms familiar to our For-Profit partners.

The Office of Sponsored Research (OSR) is pleased to announce the Facility Use Fee Budget Model, an optional budgeting model that can be used to present costs to For-Profit sponsors. This model is the product of a working group of campus representatives and was developed based on feedback from sponsors that have historically expressed concerns about F&A costs. Specifically, the model provides for the inclusion of a ‘facility use fee’ (calculated based on a University-provided formula) that would be budgeted as a direct cost. A 28% General & Administrative (G&A) cost is also included. Both of these items are then treated as standard indirect costs by the University.

We ask that you consult with your OSR representative in advance to identify if this model may be useful when developing a proposal. The budgeting templates with instructions are available on the OSR website ( Please share any feedback to regarding the effectiveness of this model and associated budget templates so that we may continue to make improvements.

Andy Johns
Senior Associate Vice Chancellor for Research

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