How is F&A calculated?


How is F&A calculated?


The basis for our F&A calculation using the applicable negotiated rate is the Modified Total Direct Cost (MTDC). Under MTDC, F&A is not assessed on equipment (a useful life of more than one year and a per-unit acquisition cost of $5,000 or more), capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward and subcontract in excess of $25,000. Our negotiated F&A rate schedules and agreements are available here.

The basis for our F&A calculation using a reduced F&A rate is the Total Direct Cost (TDC). Under TDC, F&A is generally not assessed on tuition remission.

Related Terms

Facilities and Administrative Costs (F&A Costs)