F ac ilitie s and Administr ative Rate s (o r Indir e c t Co st - PowerPoint PPT Presentation

F ac ilitie s and Administr ative Rate s (o r Indir e c t Co st Rate s o r Ove r he ad) Why T he y Matte r and Why Re se ar c h De ve lo pme nt Pr o fe ssio nals Sho uld Car e Ric k T yso r E xe c utive Dire c to r o f Ac a de mic Administra tio n Ste tso n Unive rsity No ve mb e r 3, 2017

Ag e nda  I ntro duc tio n  Our Co lle c tive E xpe rie nc e  Histo ry o f Unive rsity Re se a rc h & F e de ra l Suppo rt  F a c ility a nd Administra tive Co st De fine d  Ho w F &A’ s a re De ve lo pe d  Wha t F &A’ s a re Applie d T o  Why a re F &A’ s impo rta nt, a nd to who m  Whe n to wa ive o r re duc e F &A’ s  Why Re se a rc h De ve lo pme nt Pro fe ssio na ls sho uld c a re a b o ut F &A’ s  F &A “T hing s” to Co nside r 2

I ntro duc tio n  30+ ye a rs  De fe nse c o ntra c ting a nd Unive rsity g ra nts  Ove rhe a d Ra te F o re c a sting a nd c o st a llo c a tio n sc he ma  Ne g o tia te d de fe nse c o ntra c ts, unive rsity g ra nts, c o ntra c ts, pa rtne rships  F ina nc ia l re spo nsib ility  Re se a rc h De ve lo pme nt Suppo rt  I de ntify Oppo rtunitie s, Pro po sa l De ve lo pme nt, Co ntra c t Awa rd/ Ne g o tia tio ns  Po st Awa rd Ma na g e me nt 3

Our Co lle c tive E xpe rie nc e  De ve lo pe d Gra nt Budg e ts?  I nvo lve d in upfro nt re so urc e a llo c a tio n disc ussio ns › As a PI ? › As a Pa rtne r? › As a Re se a rc h De ve lo pme nt Pro fe ssio na l?  I n a n o rg a niza tio n “funde d” b y F &A’ s?  Ha s re turn o n F &A’ s a s a Pe rfo rma nc e I ndic a to r?  Be lie ve s F &A’ s a re e sse ntia lly unc o mmitte d funding fo r the Unive rsity to use  Ha ve fa c ulty who do no t unde rsta nd no r suppo rt F &A’ s? 4

Histo ry o f F &A’ s  1950’ s: F &A’ s a t 8%, the n 20% (NI H)  1958 – OMB Circ ula r A-21  1965 – ne g o tia te d ra te s  1979 – c o nc e pt o f mo difie d to ta l dire c t c o st (MT DC)  1991 – 26% Admin Ca p (Unive rsitie s o nly)  1996 – Use initia l ra te s re g a rdle ss o f upda te s  2013 – E U imple me nts fla t 25% F &A ra te  2014 – 2 CF R Pa rt 200 – Unifo rm Guida nc e Pub lishe d (c o mb ine d no n-c o mme rc ia l o rg ’ s) 5

Wha t Are F &A Co sts?  F a c ilitie s a nd Administra tive Co sts: › L ib ra rie s › De pre c ia tio n E xpe nse › Utilitie s › F a c ilitie s Ma inte na nc e a nd Ope ra tio ns › Administra tive E xpe nse s › Se c urity › Ge ne ra l T e c hno lo g y › I RB/ Co mplia nc e  Dire c t Co sts: › Pro g ra m/ pro je c t/ g ra nt spe c ific e xpe nse s 6

Ho w a re F &A Ra te s De ve lo pe d?  Ba se d o n Ac tua l e xpe nse s  Ca te g o rize d in Re se a rc h, I nstruc tio n a nd Othe r Po o ls  Disa llo wa b le Co sts re mo ve d (ma rke ting , fo o d, ho using , e nte rta inme nt, e tc .)  Re se a rc h › F &A e xpe nse s (nume ra to r) › Re se a rc h/ Pro g dire c t e xpe nse s (de no mina to r)  F &A Ra te s (fo r Ac a de mic I nstitutio ns): › Onsite (20-80%; a vg a ro und 45-60%) › Offsite (7-28%; a vg a ro und 15-20%) 7

Ho w a re F &A Ra te s De ve lo pe d?  Ne g o tia te d with e ithe r DHHS (NI H) o r ONR  Pro po se d (c a lc ula te d)  Ne g o tia te d (use fo r pro po sa ls)  Re a lize d › Ac tua l F &A e xpe nse re c o ve re d, re duc e d b y:  Ag e nc y Re duc e d Ra te s  No n-F e de ra l Gra nt F &A re stric tio ns  E nc o ura g e d o r re q uire d c o st sha re  I nstitutio ns ultima te ly sub sidize fe de ra l a nd no n-fe de ra lly funde d re se a rc h 8

Wha t a re F &A Ra te s Applie d to ?  Mo difie d T o ta l Dire c t Co st (MT DC) =  T o ta l Dire c t Co st e xc luding : › E q uipme nt (>$5K ) › Sub g ra nt/ c o ntra c t (a llo wa b le o n first $25K ) › T uitio n Re missio n › Pa tie nt E xpe nse s › Pa rtic ipa nt E xpe nse s › Ca pita l E xpe nse s  I ndire c t Co st c o mprise s a ppro xima te ly ____% o f to ta l c o st (o n a ve ra g e )? 9

Wha t a re F &A Ra te s Applie d to ?  Mo difie d T o ta l Dire c t Co st (MT DC)  MT DC = T o ta l Dire c t Gra nt Co st e xc luding : › E q uipme nt (>$5K ) › Sub g ra nt/ c o ntra c t (a llo wa b le o n first $25K ) › T uitio n Re missio n › Pa tie nt E xpe nse s › Pa rtic ipa nt E xpe nse s › Ca pita l E xpe nse s  I ndire c t Co st c o mprise s a ppro xima te ly ____% o f to ta l c o st (o n a ve ra g e )? 10

Why a re F &A’ s I mpo rta nt?  He lps to F und Re se a rc h E nte rprise › I nfra struc ture › Co mplia nc e › Administra tio n › Be st F a c ulty › Be st Stude nts › Na tio na l Pre se nc e a nd Ra nking s  Who b e ne fits? › I nstitutio n, Pro vo st, De a ns, Cha irs a nd Dire c to rs, F a c ulty, Stude nts, Pa re nts › Go ve rnme nt a nd So c ie ty 11

Whe n to Wa ive o r Re duc e F &A’ s  Spo nso r pub lishe d (b uilt in c o st-sha re )  E nc o ura g e d c o st sha re / e xtre me ly c o st c o mpe titive ( and le ade rship will suppo rt )  Building po rtfo lio a nd da ta  Suppo rt/ supple me nt b ridg e -funding  “L o ss L e a de r”  Othe rs?  T o pro po se o r no t pro po se ; o r sub mit o r no t sub mit – whe n/b y who m is g o /no -g o de c isio n made ? 12

Why Sho uld Yo u Ca re ?  F &A’ s F und (dire c tly o r indire c tly): › Re se arc h De ve lo pme nt Offic e s › Re se arc h Ope ratio ns › Se e d/ I nc ub ato r F unding › Unive rsity, Co lle g e /Sc ho o l, De partme nt, I nstitute , Ce nte r I nitiative s and Pro g rams › I nve stme nt in T e c hno lo g y › I nve stme nt in F ac ilitie s › F ac ulty Start-up › Be st F ac ulty, Be st Stude nts › No b e l Prize Winne rs 13

F &A “T hing s” to Co nside r  I s re se a rc h c o nduc te d in a c a de mia mo re o r le ss e xpe nsive tha n: › Co mme rc ia l E ntitie s: Ove rhe a d, Co st o f Mo ne y F a c to rs, a nd F e e Struc ture › No n-a c a de mic re se a rc h institutio ns (UARCs, sta nd-a lo ne la b s, e tc .)  Who a ssume s risk o f c o mplia nc e ?  Are F &A’ s RE AL Co st o f do ing re se a rc h? 14

F &A “T hing s” T o Co nside r I I  F &A’ s use d to inc e ntivize fa c ulty, c ha irs, de a ns a nd ? – rig ht use o f F &A’ s?  F &A’ s a llo c a te d to a unive rsity, c o lle g e o r sc ho o l’ s g e ne ra l funds? › Pro b le ms o r issue s? › Ho w to ma ke a c a se to use tho se funds  Othe r? 15

F uture Que stio ns o r Co lla b o ra tio ns? Ric k T yso r E xe c utive Dire c to r o f Ac a de mic Administra tio n Ste tso n Unive rsity De L and, F lo rida (ne ar Dayto na Be ac h and Orlando ) Rtyso r@ ste tso n.e du 386-822-7088 16