F&A (Indirect) Costs

Middlebury's official Facilities & Administration Costs rate, negotiated with the Department of Health and Human Services, is used for all grant proposals to the Federal Government unless another rate is specified in the program guidelines. Some private sponsors also pay "overhead," "administration," or "indirect costs," but the rates vary according to the funding source. Many private sponsors will allow some administrative expenses as a direct cost; the Sponsored Programs staff can help you estimate these costs. Some federal sponsors will not pay Facilities & Administration Costs but do allow us to use our negotiated rate to calculate cost-sharing.

F&A payments represent a "grant" from the federal government to the host institution that provides space and support for scholarly research. F&A payments reimburse the institution for all costs that are not directly supported by the grant and for all the hidden costs of sustaining a supportive environment where good research can be undertaken. F&A payments are factored into Middlebury's budgeting process as unrestricted income that helps Middlebury to provide up-to-date facilities and programs. F&A  reimbursements support the "matching fund," equipment maintenance, library needs, start-up funds for new faculty, purchase of new instructional equipment, science technical support staff, computer costs, etc.

The College Faculty Handbook stipulates that all grant applications must include the maximum amount in indirect costs allowed by the granting agency. If the grantor does not allow indirect costs or mandates a rate other than the federally negotiated rate, attach a copy of the pertinent regulation to your Grant Proposal Endorsement Form. Use of any rate other than the negotiated rate must be authorized by the Director of Grants & Contract Administration or designee.