Office for Research and Graduate Studies (ORAGS)

Policy To Apply For Waiver For Indirect Costs

I. Current Negotiated Indirect Cost Rates

Rate schedule for externally-funded research budgets Facilities and Administrative Cost Rates (Indirect Cost Rates)

	FY02
Research On-Campus Off-Campus	48.5% MTDC* 26.0% MTDC*
Instruction On-Campus Off-campus	45.5% MTDC* 26.0% MTDC*
Other Sponsored Activities On-Campus Off Campus	34.0% MTDC* 26.0% MTDC*
Corporate and Commercial Clinical Trials Basic/Allied Research	25.0% TDC** 46.0% TDC**

* MTDC: Modified Total Direct Costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants (regardless of the period covered by the subgrant or subcontract). Modified Total Direct Costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.

** TDC: Total Direct Costs

II. Procedure for Obtaining a Waiver of the Negotiated Indirect Cost Rate

1. Certain foundations and funding agencies have established indirect cost rates that they will pay to a grantee. Documentation should be provided at the time of routing indicating the maximum indirect cost rate the organization will support.

2. In some instances it is necessary to obtain a waiver from the negotiated indirect cost rate. This waiver should be requested in the form of a letter addressed to the Associate Dean for Research & Graduate Studies. The letter should clearly state the reason for the waiver request and any pertinent documentation from the funding source. This letter should accompany the grant at the time of routing.

III. Questions Concerning Indirect Cost Waiver Policy

All questions concerning the School of Medicine’s Policy to Apply for an Indirect Cost Waiver should be addressed to the Office for Research & Graduate Studies, 410-706-5485.