Recovering Full Indirect Costs: Industry Funded Research

Grant Services & Analysis
Dec 9, 2016 12:00 pm

This policy details the required process that should be used to negotiate the indirect cost rate with industry sponsors. The Medical School does not support indirect cost waivers on industry funded research. Please visit the Indirect Cost Waiver Policy for information specific to other sponsors.


    As decided by the RBOD Executive Committee in fall of 2013, the Medical School does not support indirect cost waivers on Industry funded research beyond what is stated for certain investigator-initiated projects in the Indirect Cost Waiver Policy

    RBOD also discussed and concluded that Principal Investigators and/or project teams should seek support and partner with the Dean's Office rather than conduct indirect cost rate negotiations independently. When a sponsor is attempting to limit UM’s indirect cost recovery to a percentage lower than current, standard rates, project teams must contact the Dean’s Office immediately. The Dean’s Office will then assume the responsibility of negotiating with the sponsor on the indirect cost rate. The Dean’s Office will work in coordination with the project team in an attempt to negotiate the appropriate rate.

    It is important that project teams involve the Dean’s Office as soon as possible. If a project team attempts to negotiate a rate on their own, and involve the Dean’s Office only when unsuccessful, it may be too late. Requests should be sent during initial budget negotiations and should not arrive after the PAF has been circulated for review and approval in the University routing system.

  • Process

    Requests should be emailed to ummsresearch@umich.edu. The following information must be included:

    1. PI name
    2. Project title
    3. eRPM record where associated documents are uploaded (i.e. PAF number)
    4. Administrative contact who is aware of the process to date
    5. Sponsor name and contact information for budget discussions
    6. Sponsor indicated indirect cost rate
    7. A description of discussions held to date with the sponsor or rationale for thinking a lower, non-standard rate is necessary.
Topic: Indirect Cost

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Edited By: mhayward@umich.edu
Last Updated: December 3, 2018 8:00 AM