Contract & Grant Administration

The F&A rates for the period beginning July 1, 2004 and ending June 30, 2011 have been negotiated with the Department of Health & Human Services. The date of the negotiation agreement, necessary for some federal agencies, is March 8, 2007. The rates, which are charged against all direct costs except equipment, the amounts in excess of the first $25,000 of each subcontract, and graduate tuition & fees, (see MTDC definition below) are as follows:

Project Type	Next Year's Rates *7/1/08 - 6/30/11*	Current Rates *7/1/04 - 6/30/08*	7/1/03 - 6/30/04	7/1/02 - 6/30/03	7/1/01 - 6/30/02
Research	52%	51%	49.5%	49%	48.5%
Other Sponsored Activities	41%	40%	38%	38%	38%
Off-Campus	26%	26%	26%	26%	26%

The one point increase in the research and other sponsored activities F&A rates is due to the additional interest expenses on large science buildings and major infrastructure renovations to science buildings.

Fringe benefits for all proposals should be prepared under the Specific Identification (SI) method. For more information and tools to help you use the SI method please click here.

For Federally-funded projects there are important rules about if and when certain costs (clerical, administrative salaries for example) can be directly charged to these projects. For further information regarding these rules please review the Federal Cost Policy.

If you have any questions regarding the application of these rates, please call your contact within the office of Contract & Grant Administration.

Modified Total Direct Costs (MTDC) is the base to which the F&A rate is applied. MTDC consists of all salaries and wages, fringe benefits (including the health component of Grad Fringe), materials and supplies, services, travel, and subgrants and subcontracts up to $25,000 of each subgrant or subcontract. Equipment, Graduate Tuition & Fees, capital expenditures, charges for patient care, space rental costs, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000 shall be excluded from modified total direct costs.

(Click here for a copy of the 3/28/07 CGA ListServ Notification E-mail From Dan Evon)

(Click here for information about MSU's F&A waiver process)

CGA Home Page