Ohio University

Indirect Cost

Indirect Cost Rate Agreement

Ohio University recovers indirect costs (formerly known as Facilities & Administration costs) through the expenditure of funds in restricted accounts, which support external research and creative activity. Proposals for such funding must budget the appropriate indirect cost rate, when allowed by the sponsor. In limited instances, the PI may request an Institutional waiver of indirect costs from the Vice President for Research; if the request has prior approval from the department chair and college dean.

Ohio University negotiated the current Indirect Cost Rate Agreement [PDF] with the Department of Health and Human Services on January 16, 2019. The following rates remain in effect until June 30, 2023:

Indirect Cost Rates

Organized Research: 51% (effective July 1, 2017)
Instruction: 49.0%
Other Sponsored Activity: 39.0%
Off-campus: 26.0%

Determining On-Campus vs Off-Campus Rates

Applying Indirect Cost Rates

In most cases, apply Facilities and Administrative cost rates to a modified total direct cost (MTDC) base. The rates are applicable to all direct costs with the exception of the following:

  • Equipment items with a threshold of $5000 or greater and a life expectancy of one year or more; Nonexpendable items valued at less than $5000 or with less than a one-year life expectancy should be budgeted as materials and supplies.
  • Participant support
  • Tuition
  • Indirect Cost is only applied to the first $25,000 of each subcontract or sub-award.

In some cases, apply Facilities and Administrative cost rates to a total direct cost (TDC) base. The rates are applicable to all direct costs without exception.

For questions regarding Ohio University's negotiated indirect cost rate, please contact your sponsored program manager.