FAQs about the Transition to the New Facilities and Administrative (F&A) Rates

Newly approved Facilities and Administrative (F&A) rates will take effect on July 1, 2024. This Frequently Asked Questions page describes how the Office of Sponsored Programs (OSP) is implementing the new rates into proposals, new awards, and existing awards. If you do not see your question here, contact OSP for assistance at osp@boisestate.edu.

Page Updated on June 26, 2024

General Questions

1. What is F&A?

F&A costs are true costs, which must be remanded to Boise State University in order to support the infrastructure necessary to provide services for externally funded projects. F&A costs are general operating costs incurred by the University in support of research, instruction, and other sponsored activities. Typically, F&A costs cannot be readily attributed to, or directly charged to, specific individual projects. F&A costs should be included as a separate line item in the budget of each proposal submitted to external funding agencies.

2. Why did the rates increase?

The F&A rate is negotiated between the Boise State University (BSU) and the Department of Health and Human Services (DHHS) Cost Allocation Services. Before negotiations began, BSU submitted a required proposal documenting the actual costs incurred during FY16 (July 1, 2015 – June 30, 2016) for such items as space, utilities, general purpose equipment, administrative salaries and benefits, etc. Costs in these categories have increased significantly since our previous negotiation in the year 2013. Even with the current rate increases BSU will not be fully recovering the costs for these items.

3. Does the new rate agreement apply to both Federal and Non-Federal projects?

Consult the chart below for the applicable rates on or after July 1, 2024.

Sponsor	On Campus	Off Campus
All Federal and Federal-Flow Through Sponsors, excluding Department of Defense Contracts/Subcontracts for Organized Research	--	--
Organized Research	41.5% MTDC	26.0% MTDC
Instruction	44.0% MTDC	26.0% MTDC
Other Sponsored Activities	35.0% MTDC	26.0% MTDC
Department of Defense Contracts/Subcontracts for Organized Research	--	--
Organized Research	42.5% MTDC	27.0% MTDC
State of Idaho Agencies, Counties, and Municipalities (Non-Federal Funds only)	--	--
Organized Research, Instruction, and Other Sponsored Activities	20.0% TDC	20.0% TDC
Idaho State Board of Education, Division of Professional-Technical Education, or the Division of Vocational Rehabilitation (Non-Federal Funds only)	--	--
Organized Research, Instruction, and Other Sponsored Activities	0.0% TDC	0.0% TDC
Private For-Profit and Non-Profit Sponsors (Non-Federal Funds only)	--	--
Organized Research	42.6% MTDC	26.0% MTDC
Instruction	49.1% MTDC	26.0% MTDC
Other Sponsored Activities	42.1% MTDC	26.0% MTDC
All other Sponsors	Use the Federal and Federal Flow-Through rates above.	Use the Federal and Federal Flow-Through rates above.

4. How do I know which rate type (e.g., Organized Research, Instruction, Other Sponsored Activities, On-Campus, or Off-Campus) applies for my Award or Proposal?

OSP’s budget development guide has detailed information on how to determine the applicable F&A rate. Contact your OSP Proposal Officer if you need additional assistance.

5. The rates for private for-profit and non-profit sponsors are different from the negotiated rate agreement. How are the rates for For-Profit and Non-Profit sponsors determined?

Boise State University applies its proposed F&A rates to proposals with private (for-profit and non-profit) sponsors.

6. Where can I find a copy of the new F&A rate agreement?

The new F&A rate agreement is available in OSP’s budget development guide webpage.

New Proposals

7. When should I start using the new rates in my proposals?

The new rates should be used immediately for all proposals anticipated to be awarded after July 1, 2024.

8. I am submitting a supplemental proposal for an existing award. What rate should I use to prepare the budget for this proposal?

Unless sponsor guidance states otherwise, all supplemental funding will be considered new funding. Any application for new uncommitted funding, such as a supplement, should incorporate the new rates.

Notable Exception: The National Science Foundation (NSF) has a policy of funding supplemental support using the negotiated indirect cost rate(s) approved at the time of the initial award, so supplemental proposals to NSF should use the original agreement’s rates. See NSF PAPPG Chapter X.D.1.d.

If you have questions, please contact your OSP Proposal Officer for assistance.

9. What rate should I use for my competing renewal application?

Competing renewal applications are considered new funding and should use the new F&A rates, regardless of the rate that was applied to the previous award.

10. What happens if I am submitting a proposal that includes a budget year starting beyond 6/30/2026?

You should use the rates in place as of 6/30/2026. For example, a federally sponsored on-campus research project with a budget period that begins on 7/1/2026 should use the provisional 41.5% F&A rate. You will be notified once a new rate agreement is in place.

11. I received a request from a sponsor to revise my budget before an award is in place (e.g., a Just-In-Time request). What rate should I use?

Generally, the project will be awarded as it was proposed (using the F&A rates included in the proposal), including Just-In-Time requests, unless the sponsor will allow for the increase in F&A rate without changing the direct costs available on the award. When sponsors may permit Boise State to request permission to apply the new rates, an OSP Proposal Officer will lead the negotiations with the sponsor. However, the direct costs available to conduct the proposed project will not be reduced as part of the budget revision or Just-In-Time negotiation for F&A. Please contact OSP Pre-Award for assistance with any budget revisions and Just-In-Time requests.

12. I have a proposal due on or before June 24, 2024 and my proposal has already been routed with the old rates. Am I required to revise my budget to use the new applicable F&A rates?

No. Proposals in progress that are submitted on or before June 24, 2024 will not be required to be revised to incorporate the new F&A rates.

Submitted Proposals

13. My proposal was submitted before the notification of the new rates and the budget includes a LOWER organized research or other sponsored activities rate. Will the proposed rate be honored even though the new rate agreement specifies different rates effective 7/1/2024?

Generally, the project will be awarded as it was proposed and will use the F&A rates included in the proposal unless the sponsor will allow for the increase in F&A rate without changing the direct costs available on the award. OSP Grants and Contracts Officers will review all new awards after July 1, 2024 for the potential application of the new organized research and other sponsored activities rates. Increases in the F&A rate will only be made if the direct costs available to conduct the proposed project will not be reduced as part of F&A change.

If you have any questions about the application of the new rates on your forthcoming award, please contact OSP Contracting Services for assistance.

14. My proposal was submitted before the notification of the new rates and the budget includes a HIGHER instruction rate. Will the proposed rate be honored even though the new rate agreement specifies different rates effective 7/1/2024?

No. Boise State must use the instruction rate in place at the time of award. OSP Grants and Contracts Officers will review all new awards after July 1, 2024 for the application of the new instruction rate. Since the rate is decreasing, more funds may be available for direct costs in the Award. The OSP Grants and Contracts Officer will coordinate with the sponsor to determine what steps need to be taken to update the budget.

If you have any questions about the application of the new rates on your forthcoming award, please contact OSP Contracting Services for assistance.

15. I submitted a proposal with a reduced, waived, or no F&A rate. Does the new rate agreement change what F&A rate is used if my proposal is awarded?

Generally, no. So long as the reduced, waived, or no rate (hereinafter “reduced F&A”) was reviewed and approved by the required institutional approvers at the time of submission, reduced F&A rates will not change due to the change in F&A if an award is made. If an error was made that resulted in the misapplication of the wrong F&A rate, your OSP Grants and Contracts Officer will work with you and the sponsor to apply the correct applicable rate in effect at the time of award. Errors that cannot be corrected with the sponsor will follow Boise State Policies 5030 (Office of Sponsored Programs) and 6080 (Facilities and Administration (F&A) Cost Rates and Waiver or Partial Waiver of F&A Costs).

If you have any questions about the application of the new rates on your forthcoming award, please contact OSP Contracting Services for assistance.

Existing Awards

16. How will the F&A rate be applied to a project that has already committed multiple periods of support and is using the old rates in all budget periods?

An additional project with the updated F&A rate will be created under the same award for the new funding.

17. If the F&A rate changes on my award will the project number change or stay the same?

An additional project with the updated F&A rate will be created under the same award for the new funding.

18. What F&A rate should be used when submitting a supplemental application under an already existing award?

Unless sponsor guidance states otherwise, all supplemental funding will be considered new funding. Any application for new uncommitted funding, such as a supplement, should incorporate the new rates.

If you have questions, please contact your OSP Proposal Officer for assistance.

19. What F&A rate is applied to carryforward funding?

The existing rate in the award will apply to any carryforward funding.

New Awards

20. I submitted a proposal prior to June 24, 2024 and built the budget with a 40.5% Organized Research F&A rate or 33.5% Other Sponsored Activities rate, but my award is made after July 1, 2024 and the new F&A rate of 41.5% or 35% is now in effect. What will happen in this situation?

If you have any questions about the application of the new rates on your forthcoming award, please contact OSP Contracting Services for assistance.

21. I submitted a proposal prior to June 24, 2024 and built the budget with a 51.0% Instruction F&A rate, but my award is made after July 1, 2024 and the new F&A rate of 44.0% is now in effect. What will happen in this situation?

Boise State must use the instruction rate in place at the time of award. OSP Grants and Contracts Officers will review all new awards after July 1, 2024 for the application of the new instruction rate. Since the rate is decreasing, more funds may be available for direct costs in the Award. The OSP Grants and Contracts Officer will coordinate with the sponsor to determine what steps need to be taken to update the budget.

22. I submitted a proposal and did not obtain the appropriate institutional approvals through OSP prior to the submission of the proposal. I used the old rates or other incorrect rates in my submission. What will happen in this situation?

Upon notification of the submission or the receipt of award, OSP will attempt to negotiate for the use of the applicable rate at the time of award with the sponsor. This may result in the reduction of direct costs in your award if the sponsor is unable to provide additional funding for an increased rate. If the sponsor does not agree to the new rate or the direct costs cannot be adjusted to allow for the correct rate, you or your department/college will be responsible for covering any differences in F&A.

For information on OSP Proposal Submission requirements, please review OSP’s Proposal Document Submission Deadline Guide and Boise State University Policy 5030.