Facilities and Administrative Rates for Federal Sponsored Programs

Facilities and Administrative Rates for Federal Sponsored Programs

Following is an important update about the university's Facilities and Administrative (F&A) Rate Agreement for federal sponsored programs. 

We recently completed negotiation of a four-year extension to our current rate agreement that continues our existing rates through June 30, 2024.  The extension also allows use of these rates as provisional for periods after June 30, 2024, until our next rate agreement is negotiated.

As you may know, the university receives an F&A rate to fund, in part, certain indirect costs related to sponsored program activities supported by the federal government. The Department of Health and Human Services is the cognizant agency that negotiates predetermined rates with the university on behalf of the federal government for all of its agencies. For the fiscal year ended June 30, 2019, the university received $303 million in indirect cost recovery. 

A summary of approved federal F&A rates under our current and new (extended) agreements appears below.

F-A Rate for Fed SP Table











Our new F&A Rate Agreement, dated May 14, 2020, is available as a pdf file on the Finance website.

New proposals for federally supported projects should include the indirect cost rates listed above and be applied to each year for which funding is anticipated. The full recovery of indirect costs is expected on all grants and contracts, up to the level allowed by the sponsor's written policy.

Regarding non-federal sponsored programs, the university’s Office of Research and Sponsored Projects (ORSP) establishes guidelines for expected indirect cost rates. The ORSP website also includes, among other things, information on the proposal preparation and submission process.  

If you have any questions or would like more information about indirect cost rates, please contact Debbie Talley, director of sponsored programs, at dtalley@umich.edu or (734) 764-9593, or Chad Greenwell, associate controller, at cdwell@umich.edu or (734) 647-3808.


Cheryl Soper
Controller & Director of Financial Operations