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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