Under certain circumstances, your DLC may accept a sponsored agreement rate that is different from the current Institute Facilities and Administrative (F&A) rate.
Understand F&A definition

Facilities and Administrative (F&A) costs are also referred to as overhead or indirect costs. You may find that those terms are used interchangeably throughout MIT documents and 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.”

Confirm under-recovery conditions

Under-recovery is the difference between the current negotiated F&A rate MIT charges to a sponsored research project and the rate a sponsor is willing to pay. Under-recovery may occur when a sponsor dictates a rate and/or base less than the F&A recovery that would result using the standard federal research rate.

Follow RAS policies and procedures

If your DLC identifies a potential under-recovery condition when you are developing a research proposal, follow the MIT policy on research under-recovery described on the Research Administration Services (RAS) website.

The Details

Understand F&A definition

Facilities and Administrative (F&A) costs are also referred to as overhead or indirect costs. You may find that those terms are used interchangeably throughout MIT documents and 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.”

Confirm under-recovery conditions

Under-recovery is the difference between the current negotiated F&A rate MIT charges to a sponsored research project and the rate a sponsor is willing to pay. Under-recovery may occur when a sponsor dictates a rate and/or base less than the F&A recovery that would result using the standard federal research rate.

Follow RAS policies and procedures

If your DLC identifies a potential under-recovery condition when you are developing a research proposal, follow the MIT policy on research under-recovery described on the Research Administration Services (RAS) website.

Did You Know?

When a sponsor’s F&A (facilities and administrative) costs are less than the current MIT negotiated research rate, Institute policy requires you to treat the difference as underrecovery.
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