Under certain circumstances, your DLC may accept a sponsored agreement rate that is different from the current Institute Facilities and Administrative (F&A) rate.
Facilities and Administrative (F&A) costs are also referred to as overhead or indirect costs. You may find that that those terms are used interchangeably throughout MIT documents and various sponsor guidelines and program specifications. MIT prefers the term F&A, which is consistent with federal government usage. The SAP system, however, uses the term “overhead.”
Underrecovery is the difference between the current negotiated F&A rate that MIT charges to a sponsored research project and the rate that a sponsor is willing to pay. Underrecovery may occur when a sponsor dictates a rate and/or base that are less than the F&A recovery that would result using the standard federal research rate.
If your DLC identifies a potential underrecovery condition when you are developing a research proposal, follow the MIT policy on research underrecovery described on the Research Administration Services (RAS) website.
The Details
Facilities and Administrative (F&A) costs are also referred to as overhead or indirect costs. You may find that that those terms are used interchangeably throughout MIT documents and various sponsor guidelines and program specifications. MIT prefers the term F&A, which is consistent with federal government usage. The SAP system, however, uses the term “overhead.”
Underrecovery is the difference between the current negotiated F&A rate that MIT charges to a sponsored research project and the rate that a sponsor is willing to pay. Underrecovery may occur when a sponsor dictates a rate and/or base that are less than the F&A recovery that would result using the standard federal research rate.
If your DLC identifies a potential underrecovery condition when you are developing a research proposal, follow the MIT policy on research underrecovery described on the Research Administration Services (RAS) website.
