THE UNIVERSITY OF WISCONSIN-MADISON
RESEARCH AND SPONSORED PROGRAMS
NOTICE 2006-6
June 15, 2006

TO:	Deans, Directors, Department Chairpersons, and Department Administrators (for distribution to all Faculty)
FROM:	Kim Moreland, Director
SUBJECT:	Industry-Sponsored Clinical Trial Rate

For well over ten years, industry-sponsored clinical trials at the University of Wisconsin have been considered an exception to the Federally negotiated F&A rate.   Justification for the reduced rate includes several factors:

• Clinical trials tend to be conducted “off site,” in such locations as the University of Wisconsin Hospital and Clinics.
• Many charges on clinical trials are patient care costs, which are an excluded category in our Federally negotiated F&A rate.

Effective July 1, 2006, the University of Wisconsin’s F&A rate for industry-sponsored clinical trials will be 28% of Total Direct Costs. The new rate should be applied to any proposals for new industry-sponsored clinical trials received in Research and Sponsored Programs on or after July 1, 2006.  We do not plan to re-negotiate agreements for trials already in progress under signed agreements.

The principal reasons for this rate increase include:

• The clinical trial F&A rate has not been increased since its inception, even as the federal negotiated rate has risen over the years.
• The University of Wisconsin’s 20% rate is the lowest rate among its peer institutions.
• Rising F&A rates reflect the increased cost of research, fueled by an exponential rise in the costs associated with research compliance.  F&A funds have been and will continue to be used for maintaining and expanding an excellent human research protection program.

Please note:  The full Federal research rate will still apply to clinical trials funded by NIH.  Industry-sponsored research, other than clinical trials, is also subject to the full Federally negotiated rate.  The University’s current F&A rates can be found on the RSP website at http://www.rsp.wisc.edu/rates/index.html.

xc: School/College Research Administrators

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