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Indirect Cost Rate Agreement and Distribution Models

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, if these costs are allowed by the sponsor. In limited instances, an Institutional waiver of indirect costs may be requested from the Vice President for Research, Dr. Joseph Shields. 

Download the current Indirect Cost Rate and Fringe Benefit Agreement (PDF) Adobe Acrobat Icon

The current Indirect Cost Rate Agreement was negotiated with the Department of Health and Human Services on September 18, 2015. The following rates remain in effect until June 30, 2017:


Indirect Cost Rates

Research: 50.5% (effective July 1, 2015) 
Instruction: 49.0% 
Other Sponsored Activity: 39.0% 
Off-campus: 26.0%**

**Note: To determine whether a project qualifies for the off-campus rate, please refer to the off campus guidlines.


Applying Indirect Cost Rates

Facilities and Administrative cost rates are applied 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.

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


Fringe Benefits Rates

Rates: Fringe Benefits Standard Benefit Rates  (Download on the linked page)