FAQs on F&A

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Proposals

• Should we use the new rate(s) now, or wait until the new fiscal year?

  You are encouraged to start using the new rate(s) now, and are required to use them for any proposal that is routed for submission on May 14, 2018 or later for budget periods beginning July 1, 2018.

• I have a proposal submitted at 52% (or 38.5%) MTDC that was selected for funding, and a revised budget is needed. What rate should I use?

  For your revised budget you should use the rate that was used in your proposal submission, in this case 52% (or 38.5%).

• If funded, will all of my proposals submitted prior to the new rate(s) now be subject to the new rate(s)?

  The rate that was proposed will be honored by the University unless the Sponsor mandates that the new rate be used.

• What F&A rate should I use for my next renewal or continuation application?

  You should use the new rates for any competitive renewal or continuation application with a period starting 7/1/2018 or later.

Awards

• If I have a contract with an F&A rate of 52% MTDC and will be asking for supplemental funds for an additional year starting 7/1/18 or later, what rate should I use?

  Additional funds, not included in the originally routed proposal for this contract, for the period starting 7/1/18 or later will be subject to the new rate of 54.5% MTDC (or 57% MTDC if it is a DoD research contract).

• Is the F&A rate and base on all of my department’s existing accounts going to be changed to the new rate(s) on 7/1/2018?

  No, grants, contracts and other agreements currently in effect will continue with the existing F&A rate and MTDC base for the duration of the award.

• If I have a federal grant (or cooperative agreement) with an F&A rate of 52% MTDC and will be asking for supplemental funds for an additional year starting 7/1/18 or later, what rate should I use?

  Additional or supplemental funds, not included in the originally routed proposal for a federal grant or cooperative agreement will be subject to the same rate throughout the life of the award. Subsequent competitive renewals or continuation periods will be assessed the new rate and MTDC base in effect at that time.

• If I have a non-federal grant or agreement for research with an F&A rate of 52% MTDC and will be asking for supplemental funds for an additional year starting 7/1/18, what rate should I use?

  Additional or supplemental funds, not included in the originally routed proposal for a non-federal grant or agreement will be subject to the new 54.5% MTDC rate.

Department of Defense (DoD)

• I currently have a DoD research contract at 52% MTDC and a part of the project will now be off campus for the next period (starting after 7/1/18), what rate should I use?

  The new DoD off campus rate should be used (either 28.5% MTDC remote or 30% MTDC adjacent).

• I have a new proposal going to DoD, and the solicitation doesn’t address whether the award will be a grant, contract or cooperative agreement. What rate should I use?

  First confirm the activity to be performed is for organized research. If yes, the new DoD rate(s) should be used along with this language added to the budget justification: “In accordance with DFARS 231.303 UMD has used its uncapped DoD F&A rate to calculate the budget. Should the DoD agency decide to award a grant or cooperative agreement instead of a contract, UMD will revise its budget to adjust the F&A rate to the capped Organized Research rate in accordance with 2 CFR 200.”

  *If the activity will not be organized research then the appropriate rate for that activity should be used.

• I have a new proposal going to DoD and the solicitation specifically states that the award will be a grant or a cooperative agreement. What rate should I use?

  The new organized research rate(s), or other new and appropriate rate for the activity being performed.

• I’m submitting a proposal to a company (or another university or other flow through entity) and don’t know if the prime sponsor is a DoD agency or not. What rate should I use?

  First confirm the activity to be performed is for organized research If yes, the new DoD rate(s) should be used along with this language added to the budget justification: “Since UMD is uncertain of the prime sponsor, in accordance with DFARS 231.303, UMD has used its uncapped DoD F&A rate to calculate the budget. Should the prime sponsor not be DoD, or the DoD agency decide to award to company (or entity) a grant or cooperative agreement instead of a contract, UMD will revise its budget to adjust the F&A rate to the capped Organized Research rate in accordance with 2 CFR 200.”

  *If the activity will not be organized research then the appropriate rate for that activity should be used.

• I have a new proposal going to DoD, and there is no solicitation or guidelines available. What rate should I use?

  First confirm the activity to be performed is for organized research. If yes, the new DoD rate(s) should be used along with this language added to the budget justification: “In accordance with DFARS 231.303 UMD has used its uncapped DoD F&A rate to calculate the budget. Should the DoD agency decide to award a grant or cooperative agreement instead of a contract, UMD will revise its budget to adjust the F&A rate to the capped Organized Research rate in accordance with 2 CFR 200.”

  *If the activity will not be organized research then the appropriate rate for that activity should be used.