What rate should I use for a subrecipient who does not have a negotiated F&A rate?

Question

What rate should I use for a subrecipient who does not have a negotiated F&A rate?

Answer

Uniform Guidance requires recipients to have a federally negotiated indirect cost rate. If the subrecipient does not have and has never had a federally negotiated indirect cost rate, then the university will allow the subrecipient to proposed budget with the de minimus rate of 10% MTDC. The university will not negotiate an F&A rate with subrecipients; however, it will allow a subrecipient an opportunity to secure a federally negotiated indirect cost rate before a subagreement is issued. Please note that some federal agencies may further limit the rate for certain subawardees. For example, NIH does not allow any F&A costs for for-profit entities without a federally negotiated indirect cost rate.

Related Terms

Facilities and Administrative Costs (F&A Costs)