Memorandum Announcing New Indirect Cost (Facilities and Administrative - F&A) Rates
December 10, 2025
MEMORANDUM
TO:ÌýChancellor Schwartz, Provost Stevens, Deans, Associate Deans for Research, Institute Directors & Department Chairs
FROM:ÌýMassimo Ruzzene, Senior Vice Chancellor for Research & Innovation and Dean of the Institutes
Todd Haggerty, Senior Vice Chancellor for Business, Finance, and Infrastructure
SUBJECT:ÌýNew Indirect Cost (Facilities and Administrative - F&A) Rates
The Indirect Cost Rate Agreement, also known as the Facilities and Administrative (F&A) Cost Rate Agreement, between Â鶹Ãâ·Ñ°æÏÂÔØBoulder and the U.S. Department of Health and Human Services (DHHS) was successfully negotiated with new rates through fiscal year 2028. This new rate agreement is based on Â鶹Ãâ·Ñ°æÏÂÔØBoulder’s F&AÌýrate proposal submitted to DHHS, which was derived from fiscal year 2022 data. The negotiation process followed the regular requirements of the 2 CFR 200 Uniform Guidance, Appendix III Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs).
Indirect costs are essential to Â鶹Ãâ·Ñ°æÏÂÔØBoulder’s status as a Tier 1 research institution. These costs are not directly allocated to individual research projects, and they consist of costs such as research facility utilities, maintenance, security, information technology, and research administration.
The following table represents the updated rates for Instruction, Organized Research, LASP Research, Other Sponsored Activities, and Intergovernmental Personnel Act agreements and a new rate approved by DHHS for Department of Defense contracts.
Ìý | Instruction | Organized Research | LASP Research | Others Sponsored Activities | DoD Uncapped Contract | Intergovernmental Personnel Act (IPA) |
| Previous Rate | 47.50 | 56.50 | 43.00 | 33.50 | N/A | 10.00 |
| Rate thru FY2028 | 48.00 | 57.50 | 46.00 | 33.50 | 63.50 | 12.00 |
| Off Campus Rate | 26.00 | 26.00 | 46.00 | 26.00 | 31.5 | N/A |
The data collection and negotiation process for Â鶹Ãâ·Ñ°æÏÂÔØBoulder’s rate agreement is overseen by the Campus Controller’s Office. The Office of Contracts and Grants (OCG) will begin to use the new rates effective for all new proposal submissions dated December 9, 2025 and forward.
Links to indirect cost information and resources:
- Federally-negotiated Indirect Cost Rate Agreement
- RatesÌýand Rate History
- Â鶹Ãâ·Ñ°æÏÂÔØBoulder Indirect Cost (F&A) Recovery Policy
- Â鶹Ãâ·Ñ°æÏÂÔØBoulder Application of Indirect Cost (F&A) on Sponsored Projects
- Understanding Indirect Costs Handout
Questions regarding proposal budget preparation and implementation of the new rates can be directed to OCG Proposal Analysts.