No, the PI uses the non-federal sponsor’s rate in the proposal budget if the non-federal sponsor has a policy that limits the recovery of research F&A (overhead). This frequently occurs with non-federal sponsors that are charitable foundations, but does not commonly occur with other types of non-federal sponsors. However, MIT policy dictates that the difference between the sponsor’s F&A rate and the current MIT negotiated research rate is treated as underrecovery (UR). The F&A UR amount for each year of the proposed project and the source of the DLC, Center, School, or VPR funds that will cover the UR is shown in Kuali Coeus. If the non-federal sponsor does not have an established policy that limits the recovery of research F&A (overhead), the PI should use the current MIT-negotiated research rate in the proposal budget.
The policy and practices described at the Research F&A Underrecovery section of the site only relate to organized research-sponsored programs. The Institute has different policies and practices related to the recovery of the non-research overhead and fund fee. Please contact your RAS Contract Administrator for questions related to non-research overhead and fund fee recovery.
Anticipated underrecoveries associated with NIH Training Grants are funded by the Institute and do not need to be analyzed at the proposal stage. Other federal research proposals being prepared with fixed or capped research F&A rates that are less than the current MIT negotiated research rate should be discussed with your RAS Contract Administrator.