Facilities and Administrative Cost Rates

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 Research56.5%
Ag Research Division49.0%
Instruction52.0%
Other Sponsored Activity46.0%
Cooperative Extension Services34.5%

Off Campus

All programs26.0%

Note: New rates effective 7/1/2025. These rates remain in effect provisionally beginning 7/1/30 and until a new agreement is negotiated.