{"id":715,"date":"2018-04-26T11:44:16","date_gmt":"2018-04-26T11:44:16","guid":{"rendered":"https:\/\/az.research.umich.edu\/medschool\/document\/indirect-cost-recovery\/"},"modified":"2026-03-31T09:15:20","modified_gmt":"2026-03-31T13:15:20","slug":"indirect-cost-recovery","status":"publish","type":"document","link":"https:\/\/az.research.umich.edu\/medschool\/policies\/indirect-cost-recovery\/","title":{"rendered":"Indirect Cost Recovery"},"template":"","categories":[71],"tags":[],"content-type":[72],"topic":[73],"update-type":[],"class_list":["post-715","document","type-document","status-publish","hentry","category-grant-services-analysis","content-type-policies","topic-indirect-cost"],"acf":{"use_legacy_editor":true,"updated_date":"2018-03-23 12:00:00","update_notice":false,"author":"Grant Services & Analysis","summary":"The Medical School's expectations regarding the recovery of indirect costs from Federal, Industry\/For-Profit, and Non-Profit sponsors<\/a>.","button_links":null,"related_content":"","legacy_path":"indirect-cost-recovery","legacy_node_id":225,"legacy_related_nids":"","legacy_content_section":[{"legacy_section_type":"heading","legacy_heading":"Overview","legacy_subheading":"","legacy_section_text":"","legacy_media_position":"","legacy_media_file":"","legacy_media_url":"","legacy_glossary_term":"","legacy_glossary_nids":"","legacy_resource":"","legacy_resource_nids":"","legacy_buttons":null},{"legacy_section_type":"text_area_with_subheading","legacy_heading":"","legacy_subheading":"","legacy_section_text":"The following describes the Medical School\u2019s expectations regarding the recovery of indirect costs (also referred to as IDC, F&A, Facility and Administrative, and overhead costs). Note, while the rates below outline what we are willing to accept from sponsors without exception needed, it is also to be used as a guideline on the offer to other entities that you contract. Standard U-M IDC Rates may be found on the ORSP website<\/a>.","legacy_media_position":"","legacy_media_file":"","legacy_media_url":"","legacy_glossary_term":"","legacy_glossary_nids":"","legacy_resource":"","legacy_resource_nids":"","legacy_buttons":null},{"legacy_section_type":"text_area_with_subheading","legacy_heading":"","legacy_subheading":"Federal","legacy_section_text":"All projects to Federal sponsors are expected to recover the full, federally negotiated rate<\/a> for the specific type of project. We recognize that specific programs (e.g. K, F, and T activity codes) have a mandated published rate that is applicable to all applicants.","legacy_media_position":"","legacy_media_file":"","legacy_media_url":"","legacy_glossary_term":"","legacy_glossary_nids":"","legacy_resource":"","legacy_resource_nids":"","legacy_buttons":null},{"legacy_section_type":"text_area_with_subheading","legacy_heading":"","legacy_subheading":"Industry\/For-Profit","legacy_section_text":"Industry sponsors<\/a> are expected to follow the same guidelines as Federal sponsors for research. In cases of a published, competitive announcement in which all applicants are held to the same published rate, the Medical School will accept the published rate.","legacy_media_position":"","legacy_media_file":"","legacy_media_url":"","legacy_glossary_term":"","legacy_glossary_nids":"","legacy_resource":"","legacy_resource_nids":"","legacy_buttons":null},{"legacy_section_type":"text_area_with_subheading","legacy_heading":"","legacy_subheading":"Foundations & Non-Profits","legacy_section_text":"The Medical School will accept a Non-Profit\u2019s standard published rate as long as it is accessible in the terms and conditions, guidelines, and\/or entity by-laws. If there is no published rate, it is expected that a minimum rate of 20% will be used. Higher education and academic medical centers are collectively treated as non-profits.\r\n\r\nNotes:<\/em>\r\n
    \r\n \t
  1. The Medical School does NOT accept emails, phone calls, letters, or other announcements as indication of a lower than standard rate. In special circumstances, when sponsors<\/a> are silent on the issue, conversations may be started with the Grant Services & Analysis Office on the appropriateness of using a historical rate prior to budgeting.<\/li>\r\n \t
  2. In cases where the sponsor is silent or clarification on a rate is needed, only the Grant Services & Analysis Office is authorized to engage a sponsor for further information and clarity. This is to ensure consistency of request and interpretation. Please contact the Grant Services & Analysis Office (msgrants@umich.edu<\/a>) for assistance.<\/li>\r\n \t
  3. The rate is assumed to be as % of total costs unless the sponsor specifically refers to the rate as \u201c% of direct costs\u201d (on the instructions, form pages, budget, etc). e.g., Sponsor lists maximum costs as $300,000 and states \u201cup to 10% may be used for indirect cost recovery\u201d.\u00a0 $300,000 * 10% = $30,000 for indirects.<\/li>\r\n<\/ol>","legacy_media_position":"","legacy_media_file":"","legacy_media_url":"","legacy_glossary_term":"","legacy_glossary_nids":"","legacy_resource":"","legacy_resource_nids":"","legacy_buttons":null},{"legacy_section_type":"heading","legacy_heading":"Standard Applications & Exceptions","legacy_subheading":"","legacy_section_text":"","legacy_media_position":"","legacy_media_file":"","legacy_media_url":"","legacy_glossary_term":"","legacy_glossary_nids":"","legacy_resource":"","legacy_resource_nids":"","legacy_buttons":null},{"legacy_section_type":"text_area","legacy_heading":"","legacy_subheading":"","legacy_section_text":"Other Sponsored Activity (class code 31000) and corresponding IDC rate should be used when a faculty member consults for a company through their U-M appointment, or when the U-M is contracted to author a protocol (only).\r\n\r\nClinical Trial Site Activity (class code 31200) applies to human clinical trials<\/a> where the protocol<\/a> is owned\/authored by the sponsor, and U-M participates as one site (typically) of many. The Indirect Cost Recovery rate for Other Sponsored Activity (OSA) is used for this type of activity for federal and foundations\/non-profits. Industry activity is now 35%.\r\n