OSRP provides comprehensive services for IIT faculty and staff on the preparation, review, approval, submission, management, non-financial reporting requirements, and close out procedures of sponsored project proposals. Our services extend to providing oversight for the pre-administration of awards for grants, contracts and other sponsored-related award instruments for federal and non-federal projects, including industry agreements.
NEW! Electronic Routing Sheet Process
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Budget and budget justification templates available. An overview of the budget process is also provided.
Academic Year: Faculty: 18.6%, Summer, 7.50%
All full-time staff: 19.7%
All part-time faculty and staff: 7.50%
For a detailed breakdown of fringe benefit rates, contact OSRP at firstname.lastname@example.org.
Illinois Institute of Technology (IIT) requires that all grant applications for external funding request the maximum indirect cost rate (also known as the F&A cost reimbursement rate) possible:
APPLICATIONS TO fEDERAL sponsors
All applications to federal sponsors must use our federally negotiated rates as stated in our indirect cost agreement which can be found at: https://web.iit.edu/gca/rates
Applications to Industry and other For-Profit Entities
Indirect cost rates for work with Industry sponsors are as follows: On-Campus Research, 60%, Off-Campus Research, 30%, IPRO projects, 8%.
Applications to other entities such as non-profit organizations or foundations
The indirect cost rate used will be defined by the policy of the organization or foundation.
Request for a waiver, reduction of indirect costs
Waivers or reductions of indirect costs are not encouraged. Any request for a waiver must be reviewed and approved by the Dean or Academic Unit Head via the Internal Processing Form (routing sheet) prior to the submission of the proposal.
In any instances where an indirect cost rate is not defined by the sponsor, will be reviewed by the Office of Sponsored Research and Programs (OSRP). The appropriate Dean or Academic Head will be contacted for additional review and approval. Approval may also be required by the Vice Provost for Research. All approvals must be in place prior to the submission of the proposal.
Any questions on which indirect cost rate should be used should be directed to the Office of Sponsored Research and Programs (OSRP)
Budget templates can be found here
Federally Negotiated F&A Cost-Reimbursement Rates
Categories of Sponsored Projects
The Federally Negotiated Rate Agreement identifies five categories of projects: Organized Research, All Programs (off-campus only) Instruction, Non-FDA (Moffett/IFSH only) FDA (Moffett/IFSH only)
This includes all federally funded research activities, both basic and applied, and all development activities which is performed at facilities owned by IIT, including but not limited to the following campuses: Mies (Main), Chicago-Kent College of Law, Institute of Design, Rice Campus. This also includes activities related to the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities.
This includes all federally funded research activities, both basic and applied, and all development activities which is performed at a facility that is not owned by IIT. This also includes activities related to the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities.
This includes all teaching and training activities, except for research training, whether they are offered for credit toward a degree or certificate, on a non-credit basis, or through regular academic departments or by separate divisions, such as summer session.
Definition of off-campus
A project, or part of a project, is considered to be performed off-campus if the activity is conducted in a facility that is not owned by IIT and the facility-related costs (rent, utilities & other maintenance) are charged directly to the project. The classification of off-campus is for the purpose of applying the correct indirect cost rate.
Indirect Cost Rates for Subrecipients
Under Federal Uniform Guidance, a subrecipient may budget and charge any of the following as an allowable indirect cost rate. The University will not negotiate an indirect cost rate with the subrecipient on behalf of the Federal Government.
- An approved federally negotiated indirect cost rate negotiated between the subrecipient and the Federal government. A copy of the current indirect cost rate agreement must be provided to, or, if no such rate exists,
- A de minimis indirect cost rate (currently 10% of Modified Total Direct Costs) as defined in 2 CFR 200.414 Indirect costs, paragraph (f).
Exceptions to Federally Negotiated F&A Cost-Reimbursement Rates
There are other common types of sponsored projects that result in F&A rates that are lower than the federally negotiated rates.
Training Grants supported by federal agencies generally allow an indirect cost rate of 8%. This 8% rate only for programs officially designated as "Training Grants" by the granting agency and formally capped by governmental or non-profit sponsor policy.
Bases for Calculating Facilities & Administrative Costs
As per the indirect cost agreement for IIT, the base is defined as:
Modified Total Direct Costs (MTDC)
The F&A rate is applied to all direct costs minus the following:
- Equipment (an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $2,500 or more per unit).
- Capital expenditures
- Patient care costs
- Student tuition remission
- Scholarships and fellowships
- Participant support costs
- Rental costs of off-site facilities
- Subcontracts over $25,000
Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.
Total Direct Costs (TDC)
- The F&A rate is applied to all of the direct costs.
Contact the Office of Sponsored Research and Programs at 312-567-3035 or email@example.com if you have any questions.