Indirect costs, or overhead, are costs not identified with a specific project or activity and may include the costs of administration, buildings, utilities, and other expenses necessary for Institute operations. Depending on the type of activity associated with the award, the sponsor and the lab or center involved, there are four distinct indirect fee types and associated rates to be applied in the proposal budgeting process:
- Federal F&A Rates – for federal sponsored research and industry sponsored research categorized as organized research
- MIT use of De Minimis Rate – for non-research other sponsored activities awards (excluding those with federally mandated rates) from federal sponsors.
- Fund Account Rates – for non-research activity awards from non-federal sponsors
- Allocation Rates – Allocation rates are budgeted as indirect costs and applied on an adjusted modified total direct cost (MTDC) base for the eleven Institute labs and centers with allocation rates approved by Office of Naval Research (ONR). These allocation charges are applied in addition to the other three indirect rates.