FAQs About the Transition to the New F&A Rates (April 4, 2014)

1. Why did the rates increase?
The F&A rate is negotiated between the UW and the DHHS Division of Cost Allocation. Before negotiations began, the UW submitted a required proposal documenting the actual costs incurred during FY12 (July 1, 2011 – June 30, 2012) for such items as space, utilities, general purpose equipment, administrative salaries & benefits, etc. Costs in these categories have increased significantly since our previous negotiation in the year 2009. Even with the current rate increases the UW will not be fully recovering the costs for these items.
2. Does the new rate agreement apply to both Federal and Non-Federal projects?
Yes, per UW policy, the new rates apply to all extramurally sponsored projects.
3. When should I start using the new rates in my proposals?
The new rates should be used immediately.
4. My application was previously submitted at 50.5% F&A before the notification of the new rates. Will this rate be honored even though the new rate agreement specifies higher rates effective 07/01/2013?
Yes, proposals previously submitted and approved at the 50.5% rate will be honored for the budget period specified in the award.
5. What rate should I use for my competing renewal application?
Competing renewal application should use the appropriate F&A rate specified in the new rate agreement.
6. I'm preparing a proposal budget for my research project today. My proposed budget year starts after 7/1/2013. What rate should I use?
For project budget years that begin on or after 7/1/2013, you should use 53.0%.
7. How will the F&A rate be applied to a project grant that has already committed multiple periods of support (i.e.: NSF, NIH, DOE, NASA, and DED)?
Rates currently in effect on active awards will be continued until the end of the current budget period (typically 12 months). A new budget period beginning on or after July 1, 2013 will be charged the new rate.
8. How will the F&A rate be applied to multiyear contracts?
Federal contracts that are incrementally funded (committed on a yearly basis) will continue with the current rate until the end of the current budget period.
Federal contracts and Non-Federal awards that are committed and authorized up front will continue at the award’s specified rate. In other words, if the awards define a specific F&A rate which is locked into the award agreement, the specified rate will continue.
9. If the F&A rate changes on my award will the internal fund/project number change or stay the same?
In most cases the project number will remain the same, however, there may be special circumstances that need to be evaluated on a case-by-case basis.