The University of Arizona

Facilities & Administrative (F&A) Rates

The activity type is the basis for Facilities & Administrative (F&A) rates applied to a project. The activity type is used by the Financial Services Office to determine the overhead and space commitments of Sponsored Research at the University of Arizona. Even though a project may contain parts of multiple categories, a single overall goal of the project must be determined. 

The F&A rate should be consistent with the classification of the project as research, instruction, other sponsored activity, clinical trial, or research training. 

The current Facilities & Administrative (F&A) Rate Agreement was signed on August 29, 2016

F&A Rate Table

 
07/01/2016
06/30/2020*

Organized Research

On-campus
53.5%
Off-campus
26.0%

Instruction

On-campus
50.0%
Off-campus
26.0%

Other Sponsored Activity

On-campus
 47.0%
Off-campus
 26.0%

Clinical Trial

 
On-campus
 25.0%
Off-campus
 25.0%

*For periods after June 30, 2020, use same rates and conditions as those cited for fiscal year ending June 30, 2020, until the rate agreement is amended.

Activity Types

Research
Activity intended to result in the creation, organization and/or application of knowledge.

Instruction
Intended to elicit educational change in a learner or group of learners.

Other Sponsored Activities
Activity that responds to a community need or solve a public problem.

Clinical Trial
Drug and device testing involving human subjects, generally funded by private sponsors.

The University will accept a 25% Total Direct Cost (TDC) F&A rate for clinical trials that meet the eligibility requirements and use the standard University agreement. The University must ensure that federal sponsors do not in any way subsidize the F&A costs of other sponsors. The clinical trial F&A cost rate of 25% Total Direct Costs is a fair rate and adequately reimburses the University for the F&A costs associated with conducting clinical trials. Studies not meeting all the eligibility criteria or those studies not using the standard agreement or similar terms will be budgeted at the full on-campus research F&A cost rate, including federally funded clinical trials.

Research Training

Involves the training of individuals in research techniques conducted in the same facility as other research projects. (Fellowships and Doctoral Dissertation Improvement). Health and Human Services (HHS) training grants are budgeted at an F&A cost rate of 8% of modified total direct costs (MTDC). 

SBIR/STTR Phase I

Phase I grants have a limited total award maximum, but are a required stepping stone to the more generous Phase II grants. By reducing the F&A rate, the Senior Vice President for Research and Research, Discovery & Innovation are investing in the success of Phase I projects through increasing funds available for direct costs. It is anticipated that this action will encourage more Phase I activity and more successful conversions of Phase I projects to Phase II. The Phase II F&A rate remains unchanged at the appropriate federally negotiated F&A rate for the activity. 

Reduction in F&A Rate for Phase I SBIRs and STTR’s Memo

Please see the SBIR/STTR Programs page for more information.

Definition of Off-Campus

The off-campus rate is applicable to those projects that are conducted in facilities not owned, leased or operated by the University, and for which facility rental costs are directly charged to the project and more than 50% of its salaries and wages are incurred at the off-campus rental facility. If a project is determined to be off-campus, it shall be considered wholly off-campus. Separate on and off-campus rates will not be used for a single project.