Federal Research Facilities and Administrative (F&A) Rates

FY2024 and FY2023 Facilities and Administrative (F&A) Rates

FY2024 and FY2023 F&A Rates

Agreement

Rate Type

On-Campus

Off-Campus

FY2024

Fixed

59.00%

6.20%

FY2023

Fixed

59.00%

6.20%

View historical F&A rates

Applying the current F&A rates

Learn what expenses qualify for off-campus rates

MIT’s latest rate agreement contains negotiated fixed rates for two years instead of one. The FY2024 agreement is effective July 1, 2022. Any award with an effective start date of 7/1/2022 through 6/30/2024 will be charged 59.0% / 6.2% for the life of the award. The MIT fiscal year runs from July 1 to June 30.

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.

F&A rates are applied to a modified total direct costs (MTDC) base. MIT annually negotiates its F&A rate with the Office of Naval Research (ONR), its cognizant federal audit agency.

Federal F&A Rate Process

F&A Costs

Two types of costs make up the total cost of a research project:  

  • Direct costs include those that can be identified specifically with a particular sponsored project or those that can be directly assigned to a particular project with a high degree of accuracy.
  • F&A costs are those costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project.

When distinguishing direct from F&A costs, the nature of the cost is not the determining factor. Rather, it is whether or not the cost can be specifically identified with a particular sponsored project.

F&A costs are incurred for the benefit of the Institute’s three primary functions or direct cost objectives: 

  • Instruction and departmental research includes teaching and training activities, sponsored instruction, and departmental research such as startup fund activity. 
  • Organized research refers to research activities that are separately budgeted and accounted for, such as federal and non-federal sponsored research and university research including cost sharing.
  • Other institutional activities include housing, dining, MIT Press, and other unallowable activities such as resource development and alumni.

F&A Rates

  • Because individual F&A costs cannot be assigned to projects, the Institute calculates a rate to determine the fair share of F&A costs each project should be charged and negotiates this rate with the government. The rate is then applied to all federally sponsored and industry sponsored research projects 
  • Allowable indirect costs are assigned to one of the F&A cost components
  • Using a modified total direct costs (MTDC) base, the F&A rate is equal to the total F&A costs allocated to research divided by the MTDC of research. The non-F&A-bearing costs in the budget must be identified so that project F&A can be accurately calculated.  

Historical F&A Rates

Historical F&A Rates

Agreement

Rate Type

On-Campus

Off-Campus

FY2024

Fixed

59.00%

6.20%

FY2023

Fixed

59.00%

6.20%

FY2022

Fixed

55.10%

5.80%

FY2021

Fixed

51.80%

5.60%

FY2020

Fixed

50.60%

6.20%

FY2019

Fixed

55.00%

5.80%

FY2018

Fixed

59.00%

5.00%

FY2017

Fixed

54.70%

6.00%

FY2016

Fixed

56.00%

5.20%

FY2015

Fixed

56.00%

5.00%

FY2014

Fixed

56.00%

4.50%

FY2013

Fixed

56.00%

4.50%

FY2012

Fixed

60.50%

5.00%

FY2011

Fixed

67.50%

5.50%

FY2010

Fixed

68.00%

6.50%