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MANAGING U.S. UNIVERSITY RESEARCH WITHIN OMB RATES. Weldon Ihrig University of Washington July, 2008. UW Current F&A Rates (effective July 1, 2007 – June 30, 2009). Organized Research Rates: On-campus: 56% Off-campus: 26% South Lake Union: 66%

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Managing u s university research within omb rates

MANAGING U.S. UNIVERSITY RESEARCH WITHIN OMB RATES

Weldon Ihrig

University of Washington

July, 2008


Uw current f a rates effective july 1 2007 june 30 2009
UW Current F&A Rates(effective July 1, 2007 – June 30, 2009)

  • Organized Research Rates:

    • On-campus: 56%

    • Off-campus: 26%

    • South Lake Union: 66%

    • Regional Primate Center: A (44%) and A+B (75%)

    • Applied Physics Laboratory: 17%

    • Vessels: 25% (salary base)

  • Instruction Rates:

    • On-campus: 58%

    • Off-campus: 26%

Weldon Ihrig, University of Washington


Uw on campus f a rate components
UW On-campus F&A Rate Components

Weldon Ihrig, University of Washington


F a costs source of revenue
F&A costs source of revenue

  • For FY 2006-2007, awarded grant and contracts exceeded $1 billion(US).

  • For FY 2006-2007, F&A recovery was ~$189 million(US):

    • ~48% distributed to pay facilities costs

    • ~31% distributed to fund departmental RCR

    • ~20% used for other general administrative and library costs

      (from Office of Research Facilities and Administrative Rate Primer http://www.washington.edu/research/4researchers/fa.php)

Weldon Ihrig, University of Washington


Uw negotiated vs calculated f a rates
UW negotiated vs calculated F&A rates

  • Negotiated on-campus rate: 56%

  • Calculated on-campus rate: ~61% (administrative costs calculated ~31% versus 26% cap)

  • If 61% rate applied in FY 2007, recovery estimated to have increased by almost $19 million(US)

Weldon Ihrig, University of Washington


What works for universities
What works for universities?

  • Competitive awards without politics

  • Single Federal indirect cost rate applied to all agencies

  • Rate based upon demonstrated prior indirect cost expenditures by the universities

  • Research opportunities enhances graduate & undergraduate student experiences

Weldon Ihrig, University of Washington


Areas for improvement
Areas for Improvement

  • Remove 26% cap on administrative costs rate

  • Prohibit attempts by Federal agencies to cap indirect costs they will pay

  • Consistent interpretations of A-21 rules among regions & reduce complexities

  • Exclude university cost sharing in calculating rate

  • Negotiations based upon cost components data, not bottom line target

Weldon Ihrig, University of Washington


Cautions for universities
Cautions for universities

  • Indirect costs recovered are for expenditures incurred, not “free money”

  • Risk of over investment in facilities assuming growth in research

  • Universities must comply with the A-21 rules to avoid political interventions

  • Growth in research requires investment in support services & modernization of facilities

  • Fully loaded charge-out rate option for private foundations/businesses

Weldon Ihrig, University of Washington


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