Facilities and Administrative Costs (F&A Costs)

The USM Facilities and Administrative Costs (F&A) rate is negotiated with its cognizant agency, the U.S. Department of Health and Human Services. Your Grants Administrator can help determine the appropriate rate to apply to your proposals. Waiving F&A costs requires approval; see the Forms List.

Facilities and Administrative Costs (F&A) are based on modified total direct costs (MTDC).*

Project Type

Fiscal Year

On CampusOff Campus
Off Campus
Organized Research 7/1/14 – 6/30/1747.5%28.0%26.0%
 7/1/17 – 6/30/18 48.0%28.0%26.0%
Instruction & Other Sponsored Activities 7/1/14 – 6/30/1846.0%28.0%26.0%


*Base: Modified total direct costs, consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel, and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (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.
+"Off Campus" applies to all facilities not owned by the institution and to which rent is directly allocated to the project. Grants or contracts will not be subject to more than one F&A cost rate. If more than 50% of a project is performed off-campus, then the off-campus rate will apply to the entire project.

Off Campus, Adjacent applies to locations within a day's drive of a University library. The Off-Campus adjacent rate of 28% should be used for locations within normal commuting distance from the University that allow access to one of the University's libraries.

 ++Off Campus, Remote rate of 26% generally refers to locations beyond normal commuting distance from the University.