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Facilities and Administration Rate Agreement

Facilities and Administrative (F&A) Costs

 

  • F&A Costs are costs incurred for a common or joint activity of the university that cannot be easily or specifically identified with a particular project.

  • F&A Costs are actual costs that are not readily identified with a specific research project.

 


F&A Cost Rates

  • F&A Cost Rates are negotiated with the federal cognizant agency, the U.S. Department of Health and Human Services (DHHS).
  • Current rates for Texas A&M University and the Texas A&M Research Foundation: 45.5 percent of Modified Total Direct Costs for on-campus work; 26 percent for off-campus work.

 

What does the F&A Cost Rate include?

  • General administrative costs such as the President’s office, Vice President’s office, accounting office, purchasing office, and human resources office
  • Departmental administrative costs, such as clerical time and office supplies
  • Building and general purpose equipment use
  • Physical plant operations and maintenance (utilities)
  • Sponsored project administration (Vice President for Research, Office of Research Policy and Development Support)
  • Library expenses

 

How is the F&A cost calculated?

For Texas A&M Research Foundation rates*, F&A costs are calculated as a percentage of Modified Total Direct Costs (MTDC), which are Total Direct Costs minus:

  • Equipment ($5,000 and over)
  • Tuition and stipend payments
  • Cyclotron beam time
  • TTI Proving Grounds
  • Subcontract costs > $25,000
  • CIS Costs

         * the Texas A&M rate agreement varies slightly

 

Guidelines to be observed in establishing sponsored agreement terms for recovery of F&A costs

(1) Agreements with federal agencies will provide for F&A cost recovery at the rates negotiated by the A&M System with the DHHS, except: (a) where the F&A cost reimbursable by a federal agency on a particular project is fixed by statute or regulation, or (b) where other circumstances dictate the necessity for accepting a lesser F&A cost rate.

(2) Agreements with Texas state agencies and political subdivisions, at the option of the A&M System component, except where the agreement is funded with federal flow-through funds, may provide for cost sharing of F&A costs with full justification in the sponsored agreement for such cost sharing.

(3) Agreements with private business organizations will provide for F&A cost recovery at the rates negotiated by the A&M System with the DHHS, unless there is suitable compensation made for the difference between the F&A recovery and the negotiated F&A rate.

(4) Agreements with private foundations will provide for F&A cost recovery at the rates negotiated by the A&M System with the DHHS, except where precluded by regulations of the foundation.