Information On Negotiated Federal Indirect Cost Rate
The negotiated indirect cost rate between SIBCR and DHHS is 35.7% effective 5/18/09. This indirect rate should be calculated on modified total direct costs (MTDC) until further notice. The negotiated fringe benefit rate effective 10/1/09 is 31.3%.
The definition of MTDC includes all direct project costs except the following items:
- Equipment costs: Equipment is defined as items $5,000 or more per unit. If the cost is under this amount, they are considered supplies and subject to indirect costs.
- Subgrants/contracts: Costs incurred under subgrants and subcontracts in excess of $25,000 of each subgrant or subcontract within a competing segment of an award. For example, on an NIH award with a 3-year project period that includes a $50,000 subcontract each year, the SIBCR indirect costs are charged only on the first $25,000 of the subcontract within the entire project period.
- Rental Costs: Rental costs of off-site buildings.
- Patient Care Costs: This includes both inpatient and outpatient VA hospital charges but not laboratory charges assessed through cost centers even though the laboratory results may be used for patient care. Also, outpatient travel and volunteer incentive payments are not excluded from indirect costs.
- Capital expenditures: Capital expenditures include building alterations or renovation costs over $25,000.
For further clarification or assistance in calculating indirect costs, please contact Danielle Belisle, Senior Grants and Contracts Manager, danielle@sibcr.org, 206-277-3971; or Kenji Schwarz, kenji@sibcr.org, Grants and Contracts Manager, 206-764-2731; Alka Goyal, Grants Specialist, alka@sibcr.org, 206-277-6588.
