Applicability of MIT F&A Rate Agreements Under "Fixed Rate" Requirements

PDF: Applicability of MIT F&A Rate Agreements Under "Fixed Rate" Requirements  - January 2021

MIT’s latest rate agreement contains negotiated fixed rates for two years instead of one, as did our last rate agreement. This agreement is effective July 1, 2020, and fixes our FY21 rates at 51.8% On campus and 5.6% Off campus. The new agreement also provides fixed FY22 rates of 55.1% On / 5.8% Off. Because of this, awards effective as of July 1,2020 will be subject to two different fiscal year F&A rates.

To determine which rate applies, please see the following guidance:

Any award with an effective start date of 7/1/2020 through 6/30/2021 will be charged 51.8% / 5.6% from the start date through 6/30/2021 and 55.1% / 5.8% fixed for the remainder of the life of the award.

Any award with a start date on or after 7/1/2021 will be charged 55.1% / 5.8% for the life of the award.

NOTE:  Fixed for the life provisions are only applied to federal and federal prime awards. Foundation, industrial and other non-federal awards may be subject to the rate in effect at the time that expenses post.