Federally negotiated facilities and administrative (F&A) costs, also known as indirect costs, are charged against modified total direct costs (MTDC).
Modified total direct costs exclude:
- Equipment, defined as an item having a useful life of one year or more and an acquisition cost of $10,000 or more (7/1/26 or later) or $5,000 or more (6/30/26 or prior)
- Capital expenditures
- Charges for patient care
- Tuition remission
- Rental costs of off-site facilities
- Scholarships and fellowships
- The portion of each subgrant/subcontract in excess of $50,000 (7/1/26 or later) or $25,000 (6/30/26 or prior)
Download the Current Rate Agreement PDF
Agreement Date: April 12, 2026
HHS Representative: Ernest Kinneer, (214) 767-3261
On Campus
| Organized Research | 56.5% |
| Ag Research Division | 49.0% |
| Instruction | 52.0% |
| Other Sponsored Activity | 46.0% |
| Cooperative Extension Services | 34.5% |
Off Campus
| All programs | 26.0% |
Note: New rates effective 7/1/2025. These rates remain in effect provisionally beginning 7/1/30 and until a new agreement is negotiated.
Are F&A Waivers Allowed?
The Vice Chancellor for Research and Innovation retains authority for waivers of F&A costs on proposals and awards. Because F&A costs represent true costs of a project, waiver requests should be limited only to those rare circumstances where the benefit to the university outweighs the monetary loss to the university. Some circumstances under which a waiver will be considered include: 1) the sponsoring agency has published policies limiting or prohibiting the payment of full F&A or indirect costs; 2) the project requires significant cost sharing that cannot be met by other sources; or 3) there are extenuating circumstances that support such a waiver. Industry/For-Profit sponsors are expected to receive financial benefit from the research and therefore must pay UNL’s full research F&A rate.
Any request for a reduction of full F&A must be documented using the F&A Waiver Request form, including thorough justification and signed by the cognizant department chair and dean, prior to submission to the Office of Sponsored Programs for consideration and submitted well in advance of the proposal due date. The Vice Chancellor for Research and Innovation makes the final determination for all waiver requests. You will be notified via email of the final determination.
For federal, state, and foundation proposals, if a sponsor’s published policy exists limiting our full F&A rate, a copy of the published policy (or a website where it can be found) is sufficient for justification. This request does not require approval by the department chair and dean.
