Facilities & Administrative Rates FAQ’s

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 August 1, 2022 or later for budget periods beginning July 1, 2022.

First you should confirm what type of activity will be performed. Then you should apply the appropriate F&A rate to the costs in the first period that occurs in FY23, and then apply the appropriate stepped F&A rate to all other periods that occur in FY 24-25.

For your revised budget you should use the rate that was used in your proposal submission.

No, the rate that was proposed will be honored.

You should use the new rates for any competitive renewal or continuation application with a period starting 7/1/2022 or later.

Additional funds, not included in the originally routed proposal for this contract, for the period starting 7/1/22 or later will be subject to the new rate(s) appropriate to that sponsor

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.

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.

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

The new DoD off campus rate should be used (either 28.5% (FY23)/29% (FY24-26) MTDC remote or 30.5%(FY23)/31.5% (FY24-26) MTDC adjacent).

First confirm the activity to be performed is for organized research. If yes, the new DoD rate(s) for the appropriate fiscal years 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(s) 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 for the appropriate fiscal years.

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

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(s) for that activity should be used.

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(s) for that activity should be used.