UC San Diego SearchMenu

Budgets - Indirect Costs (IDC)

Find information about indirect costs on sponsored research budgets.

Federally Negotiated IDC Rate Agreements

UC San Diego’s IDC rates are negotiated with the US Department of Health and Human Services (DHHS), the cognizant agency for our Facilities and Administrative rate agreement. 

UC San Diego Indirect Cost Rate Agreement (PDF)

Expand all

UC San Diego IDC Rates


Rates apply to Modified Total Direct Costs (MTDC) except where noted.

FY 2019

July 1, 2018 to
June 30, 2019

FY 2020

July 1, 2019 to
June 30, 2020

FY 2021

July 1, 2020 to
June 30, 2021

FY 2022

July 1, 2021 to
June 30, 2022

Sponsored Research1
On-Campus
Off-Campus

 
57%
26%

 
57.5%
26%

 
57.5%
26%

 
58%
26%

Federally Funded Clinical Trials
On-Campus
Off-Campus


57%
26%


57.5%
26%


57.5%
26%


58%
26%

Federal Flow Through2
On-Campus
Off-Campus

 
57%
26%

 
57.5%
26%

 
57.5%
26%

 
58%
26%

Instruction1
On-Campus
Off-Campus

 
53%
26%

Other Sponsored Activity1
On-Campus
Off-Campus

 
47%
23.4%

 
48%
23.4%

 
48%
23.4%

 
48.5%
23.4%

Industry Sponsored Research3
On-Campus
Off-Campus


57%
26%


57.5%
26%


57.5%
26%


58%
26%

Industry Funded Clinical Trials4
Applies if 100% Industry Funded for both Sponsor-Initiated & PI-Initiated Clinical Trials (On-Campus and Off-Campus)

 

30% Total Direct Costs (TDC)5

Non-Profit Sponsors

Based on sponsor-written policy. See the Non-profit IDC Blink page.

State of California Sponsors6
On-Campus
Off-Campus

 
25%
25%

 
30%
25%

 
35%
25%

 
40%
25%

Nimitz Marine Facility & Marine Physical Laboratory


18%

Ship Operations7

8.34%

UC San Diego has different negotiated indirect cost rates based on the major functions of the university as described in Appendix III to Part 200 - Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs):

  • Sponsored Research: all research and development activities that are sponsored by Federal and non-Federal entities that are separately budgeted and accounted for. This includes activities involving the training of individuals in research techniques (research training) where such activities utilize the same facilities as other research and development activities. Research includes basic, applied, developmental, clinical, and other research activity types.
  • Instruction: the teaching and training activities of the university established by grant, contract, or cooperative agreement, whether they are offered for credits or on a non-credit basis. This should not be used for research training as defined above.
  • Other sponsored activitiesprograms and projects financed by Federal and non-Federal entities which involve the performance of work other than instruction and organized research. Examples include health service projects, community service programs, or other public service programs or projects.

2 Federal Flow Through is when a Federal Agency is the Prime (Original) Sponsor - this applies to both Sponsored Research and Clinical Trials:

  • Federal funding as the prime determines the applicable IDC rate. The federally negotiated rate trumps the rate that would apply to the flow-through entity, including when the flow-through entity is a local or State of California agency. For example, funding that originated from a federal agency and flows through a non-federal sponsor (with a different IDC rate) is still subject to the federally negotiated IDC rate of 57.5% in FY2020 for work performed on-campus. 

3 UC Policies on Industry Agreements. For more information go to Indirect Costs for Industry in Blink.

4 Industry Funded Clinical Trials Official Announcements:

5 Total Direct Costs (TDC). More information on Direct Costs in Blink.

6 For State of California awards, the rate in effect for the first year of a multi-year project will be the rate used for the entire project in proposed and awarded budgets. If additional funds (not previously appropriated or budgeted) are awarded by a State agency, the proposed budget for these additional funds would use the UC-approved state rate in effect at the time the new budget request is submitted.

  • Exception for California Institute of Regenerative Medicine (CIRM): CIRM allows for recovery of indirect costs (IDC) in addition to the Facilities Costs. The IDC is usually capped at 20% for most awards (exceptions include RFA 05-01, 08-03, 08-04, and PA 08-06). The IDC should be assessed on the Facilities Costs and Adjusted Project Costs, which exclude Equipment, Tuition and Fees, Research Patient Care Costs, and the total cost of each service contract, Subcontract and Consultant agreement in excess of $25,000. Please check the proposal guidelines.
  • Exception for California Energy Commission (CEC) Electric Program Investment Charge (EPIC): University of California (UC) is only approved to use 25% MTDC because the existing negotiated award template between UC and CEC includes a 25% MTDC indirect cost (IDC) rate as a contractual term for the EPIC project. UC is unable to use another IDC rate until an amendment to the award template is negotiated.

7 Modified Total Direct Costs (MTDC) plus exclusion of fuel and MOSA expenses. (SIO)

Modified Total Direct Costs (MTDC)

Uniform Guidance (2 CFR 200) requires that indirect costs be allocated on the basis of modified total direct costs (MTDC).

For sponsored proposals and agreements using the federally negotiated rate, the following budget items are excluded from the MTDC:

  • Equipment
    • Tangible personal property with an acquisition cost of $5,000 or more and a useful life of more than one year
  • Capital Expenditures
    • Buildings, alterations, renovations, etc.
  • Patient Care Costs
  • Graduate Student Tuition Remission
  • Participant Support Costs
    • Stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) for conferences or training projects.
  • Rental Costs of Off-Site Facilities
    • Does not include costs for hotel rooms, equipment, or automobile rental
  • Scholarships and Fellowships
    • Financial aid paid directly to university students as stipends or dependency allowances.
  • The portion of Outgoing Subawards that exceeds $25,000
    • IDC is assessed only on the first $25,000 for the lifetime of any Outgoing Subaward, regardless of duration; this includes the UC/DOE Laboratories: Lawrence Livermore, Lawrence Berkeley, and Los Alamos National Labs
    • When a grant/contract requires a new fund number, IDC will be re-assessed
    • Exception: the entire amount is excluded for subawards to another UC campus, also called Outgoing Multi-Campus Awards
  • Cloud Computing Costs via UCSD Contracts/ ITS/ SDSC
    • Includes: Amazon Web Services, Microsoft Azure, SDSC Cloud, Triton Shared Computing Cluster (TSCC), SDSC Project Storage and Sherlock Cloud.
    • New account codes assigned to these costs will ensure these charges are exempt from IDC.
    • Note: Cloud computing costs acquired directly, or through purchase of equipment/licenses, will be subject to the assessment of IDC.
    • See Cloud Computing Services: Exemption from Indirect Costs for more information.

On-campus and Off-campus Rates

New Resource! List of Buildings (Excel) and their On/Off Campus classification

On-campus OR Off-campus Site

Use the On-campus Rate

  • When projects are conducted in buildings owned by the University regardless of where they are physically located.
  • When rent is paid by the campus, but not charged directly to the project.

Use the Off-campus Rate

  • When projects are conducted at buildings not owned or leased by the University.
  • When rent is charged directly to the project.

Combination of On-campus AND Off-campus Sites

Either On-campus and Off-campus Rate

  • Either the on-campus or off-campus rate is generally applied, consistent with the location where the majority of the work is to be performed.
  • For this purpose, salary costs are generally accepted as the measure of work performed.

Both On-campus and Off-campus Rate

  • The use of both on-campus and off-campus rates for a given project may be justified if both of the respective rates can be clearly identified with a significant portion of salaries and wages for a given project.
  • For the purposes of this provision, significant is defined as approximately 25% or more of the total costs, and a project's total salary and wage costs exceed $250,000.

Budget Justification

Standard Budget Justification

The budget justification should include the following language concerning indirect costs:

UC San Diego’s indirect costs are calculated based on Modified Total Direct Costs (MTDC) as defined in 2 CFR Part 200.68 using Facilities and Administration (F&A) rates approved by the U.S. Department of Health and Human Services (DHHS).

Rates established by UC San Diego’s F&A rate agreement dated May 23, 2018 are as follows:

  • July 1, 2018, to June 30, 2019: 57.0%
  • July 1, 2019, to June 30, 2020: 57.5%
  • July 1, 2020, to June 30, 2021: 57.5%
  • July 1, 2021, until amended: 58.0%

Detailed Budget Justification

If the sponsor requires a more detailed justification, the following optional language, which includes details of MTDC, subawards, and place of performance, may be used:

UC San Diego’s indirect costs are calculated based on Modified Total Direct Costs (MTDC) as defined in 2 CFR Part 200.68 using Facilities and Administration (F&A) rates approved by the U.S. Department of Health and Human Services (DHHS).

MTDC is comprised of total direct costs less capital equipment, alterations and renovations, patient care costs, off-campus rent, tuition and fee remission, scholarships and fellowships, participant support costs, and that portion of subcontract costs in excess of $25,000. Additionally, the total amount of subawards to other University of California campuses are excluded. This project will be located on-campus.

Rates established by UC San Diego’s F&A rate agreement dated May 23, 2018 are as follows:

  • July 1, 2018, to June 30, 2019: 57.0%
  • July 1, 2019, to June 30, 2020: 57.5%
  • July 1, 2020, to June 30, 2021: 57.5%
  • July 1, 2021, until amended: 58.0%

Understanding IDC

The Cost of Research

Did you know the IDC collected does not fully cover the true cost of conducting research at UC San Diego? For more information go to the Office of Research Affairs (ORA) website: research.ucsd.edu.


4 minutes

Resources

Additional information about IDC and F&A:

Link to YouTube video
20 minutes

Expand all