Indirect Cost (Overhead) Rates
Rev. May 12, 2015
Office of
Sponsored Projects
The Negotiated Indirect Cost Rate Agreement between the University and the US Department of Health and
Human Services has established the indirect cost rates shown below. Effective immediately, these are to be
used in proposal budgets through Fiscal Year 2016.
The indirect cost rates contained herein are for use on all grants and/or contracts with all agencies in
accordance with the cost principles mandated by the Office of Management & Budget.
Organized research R&D means all research activities, both basic and applied, and all development activities
that are performed by non-Federal entities. The term research also includes activities involving the training of
individuals in research techniques where such activities utilize the same facilities as other research and
development activities and where such activities are not included in the instruction function.
“Research” is defined as a systematic study directed toward fuller scientific knowledge or understanding of the
subject studied. “Development” is the systematic use of knowledge and understanding gained from research
directed toward the production of useful materials, devices, systems, or methods, including design and
development of prototypes and processes.
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Basic research is defined as systematic study directed toward fuller knowledge or understanding of the
fundamental aspects of phenomena and of observable facts without specific applications towards
processes or products in mind.
Applied research is defined as systematic study to gain knowledge or understanding necessary to
determine the means by which a recognized and specific need may be met.
Development is defined as systematic applications of knowledge or understanding directed toward the
production of useful materials, devices, and systems or methods, including design, development and
improvement of prototypes and new processes to meet specific requirements.
Sponsored training means specific instructional or training activity established by grant; contract, or
cooperative agreement.
Any project for which the purpose is to instruct any student at any location; recipients of this instruction may
be URI students or staff, teachers or students in elementary or secondary schools, or the general public;
Curriculum development projects at any level, including projects that involve evaluation of curriculum or
teaching methods; such evaluation may be considered “research” only when the preponderance of activity is
data collection, evaluation, and reporting; Projects that involve URI students in community service activities
for which they are receiving academic credit; Activities funded by awards to departments or schools for the
support of students; Dissertation work funded by grants, including grants for travel in relation to a dissertation;
Upward Bound Program, bringing local students on campus for classes; General support for the writing of
textbooks or reference books, videos, or software to be used as instructional materials
Other sponsored activities means programs and projects financed by Federal and non-Federal agencies and
organizations which involve the performance of work other than instruction and organized research. Examples
of such programs and projects are health service projects and community service programs.
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Agricultural Experiment Station means activities supported by the four federal AES formula grants (“Land
Grants”) awarded to the College of Resource Development: Hatch, MacInyre-Stennis, Regional Research, and
Animal Health. The AES rate is applicable only to these four grants and is listed here for information purposes
only.
Ship/Marine Tech means sponsored activities involving costs for the University’s
research vessels or for the services of the University’s Marine Technicians unit at GSO.
Cost Principles for Educational Institutions” requires the institution to organize its sponsored expenditures into
certain defined functional activities. These costs are then used to develop the Facilities & Administrative (F&A)
rates, negotiated with the federal government, to reimburse F&A costs for the activity.
DEFINITION OF ON-CAMPUS RATE: The on-campus rate is applicable to those projects conducted at facilities
owned or leased by the University of Rhode Island.
DEFINITION OF OFF-CAMPUS RATE: The off-campus rate is applicable to those projects conducted at facilities
not owned or leased by the University of Rhode Island.
PARTIALLY ON AND OFF CAMPUS PROJECTS: In instances where the combination of on-campus and offcampus activities are taking place, then either the on-campus or the off-campus rate should be applied,
consistent with where 75% of the work is to be performed.
Rates for All FEDERAL Grants & Contracts
July 1, 2013 through June 30, 2017
RATE
*BASE
**APPLICABLE TO
***LOCATION
53.50% (a)
Organized Research
On Campus
55.00% (a)
Sponsored Training/Instruction
On Campus
46.00% (a)
Other Sponsored Activities
On Campus
50.00% (a)
Agricultural Exp Station
On Campus
17.50% (a)
Ship/Marine Tech
All Locations
26.00% (a)
Organized Research
Off Campus
26.00% (a)
Sponsored Training/Instruction
Off Campus
26.00% (a)
Other Sponsored Activities
Off Campus
26.00% (a)
Agricultural Exp Station
Off Campus
*Allocation Base (a): Modified Total Direct Costs, consisting of all salaries and wages, fringe benefits, materials,
supplies, services, travel and subcontracts up to the first $25,000 of each subcontract (regardless of the period
covered by the subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges
for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as
well as the portion of each subcontract in excess of $25,000*.
*This means that the first $25,000 of each subcontract is subject to the full indirect cost rate. **For definitions
or information about applicable categories and any other indirect cost matters, call the Specialist assigned to
your college
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Rates for All FEDERAL Grants & Contracts
July 1, 2012 through June 30, 2013
RATE
*BASE
**APPLICABLE TO
***LOCATION
53.00% (a)
Organized Research
On Campus
55.00% (a)
Sponsored Training/Instruction On Campus
46.00% (a)
Other Sponsored Activities
On Campus
50.00% (a)
Agricultural Exp Station
On Campus
17.50% (a)
Ship/Marine Tech
All Locations
26.00% (a)
Organized Research
Off Campus
26.00% (a)
Sponsored Training/Instruction Off Campus
26.00% (a)
Other Sponsored Activities
Off Campus
26.00% (a)
Agricultural Exp Station
Off Campus
Rates for All FEDERAL Grants & Contracts
July 1, 2010 through June 30, 2012
RATE
*BASE
**APPLICABLE TO
***LOCATION
52.00% (a)
Organized Research
On Campus
55.00% (a)
Sponsored Training/Instruction On Campus
46.00% (a)
Other Sponsored Activities
On Campus
50.00% (a)
Agricultural Exp Station
On Campus
17.50% (a)
Ship/Marine Tech
All Locations
26.00% (a)
Organized Research
Off Campus
26.00% (a)
Sponsored Training/Instruction Off Campus
26.00% (a)
Other Sponsored Activities
Off Campus
26.00% (a)
Agricultural Exp Station
Off Campus
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