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The Office of Cost Analysis is pleased to announce that the University has successfully completed negotiations with the federal government for a new four-year facilities and administration (F&A) rate agreement. The new agreement includes the following:

  • The on-campus Organized Research rate will remain at 54.0% in FY20 and FY21, and will increase to 55% in FY22 and beyond
  • The on-campus Other Sponsored Activities rate will remain at 33% in FY20 and FY21, and will increase to 35% in FY22 and beyond
  • The on-campus Hormel rate will remain at 55% in FY20 and FY21, and will increase to 59% in FY22 and beyond
  • The DOD Contract rate will remain at 57% and the Instruction rate will remain at 50%

PIs and their support staff are strongly encouraged to begin using these new rates in new and renewal proposals immediately when budgeting for FY22 and beyond. EGMS and EFS have been updated with the new rates and they will be applied automatically to proposal budgets that are not in a frozen status.

Recognizing that there are proposals in advanced stages of preparation or already in the routing and approval process, there will be flexibility allowed in the use of either the old or new rates. However, any proposals that are due to the sponsor on or after October 1st OR any proposals submitted to SPA on or after September 30th must use the new rates.  

For a complete list of the rates please refer to the Current F&A Rates table on the Office of Cost Analysis website. 

For assistance in calculating F&A in proposal budgets that cross years using different rates, please refer to the Tool to Calculate Split F&A Rates spreadsheet.

Please feel free to ask your Grants Administrator or a SPA Manager if you have any questions about the rates or their implementation.