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Implementation Instructions for New F&A Rates
last updated
05/19/08
Download this page in
Microsoft Word format.
Download the 3/24/08 F&A rate agreement
in PDF format
| F&A Rates |
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Federal Funds (and Federal Flow Through)*
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Nature of Sponsored Activity
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On/Off Campus
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FY 2006
9/1/05– 8/31/06
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FY 2007
9/1/06– 8/31/07
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FY 2008
9/1/07– 8/31/08
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FY 2009 (Projected)
9/1/08– 8/31/09 and
thereafter
|
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Organized Research
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On Campus
Off Campus
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49.5%
26.0%
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51.0%
26.0%
|
51.0%
26.0%
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51.0%
26.0%
|
|
* Department of Defense (DoD) Contracts *
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On Campus
Off Campus
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50.5%
26.0%
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52.0%
26.0%
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52.0%
26.0%
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52.0%
26.0%
|
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Instruction/Sponsored Training
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On Campus
Off Campus
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50.0%
26.0%
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50.0%
26.0%
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50.0%
26.0%
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50.0%
26.0%
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Other Sponsored Activity
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On Campus
Off Campus
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39.0%
26.0%
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39.0%
26.0%
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39.0%
26.0%
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39.0%
26.0%
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Non-Federal Funding*
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Organized Research
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On Campus
Off Campus
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55.2%
27.4%
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55.2%
27.4%
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55.2%
27.4%
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55.2%
27.4%
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Instruction/Sponsored Training
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On Campus
Off Campus
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77.7%
49.2%
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77.7%
49.2%
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77.7%
49.2%
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77.7%
49.2%
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Other Sponsored Activity
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On Campus
Off Campus
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43.1%
30.1%
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43.1%
30.1%
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43.1%
30.1%
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43.1%
30.1%
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Industry Funded Clinical Trials
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On or Off-Campus
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26.0% TDC
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26.0% TDC
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26.0% TDC
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26.0% TDC
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*All rates shown above are Modified Total Direct Cost (MTDC)
unless specifically listed as Total Direct Costs (TDC). Modified Total
Direct Cost (MTDC) is defined as all proposed direct costs minus the following
expenditure objects:
- 5335: Fabricated Equipment (fabrication cost of $5,000
or more and a useful life of at least one year)
- 5490: Space Rental
- 5720: Hospital Medical Expenses
- 6910-6960: Telecommunication Expenses
- 7510–7599: Capital Equipment (acquisition cost of
$5,000 or more and a useful life of at least one year)
- 8010–8080: Tuition and Stipends
- 8510: Amortization
- 8650: Subcontracts in Excess of the First $25,000
Total Direct Cost (TDC) is defined as all
proposed direct costs, minus expenditures on object 8661 (IRB Fee). This
object is only used on industry-funded clinical trials.
For non-profit sponsors, such as voluntary health organizations,
which publish and reimburse at F&A rates that are lower than Northwestern’s
established rates, the TDC base should be used unless an MDTC base or
specific individual cost exclusions are listed in the Sponsor's published
rate.
PROPOSAL INSTRUCTIONS
F&A RATE AGREEMENT CITATION
If asked to cite Northwestern’s federally-negotiated F&A rate agreement
(i.e. NIH Checklist page), always list our current rate agreement date
(DHHS, 3/24/08).
Download a copy of the 3/24/08 DHHS
F&A Rate Agreement
HOW TO CALCULATE F&A:
- Determine start date of project (e.g., January 1, 2006). Note the
increased significance of establishing a definitive start date on federal
projects – if you change the start date, the F&A will need to be
adjusted accordingly. When start date is in doubt, use the latest possible
start date to ensure sufficient funding for F&A.
- Identify the number of months in the budget period that will be assessed
at each FY F&A rate (e.g. 8 months at the FY 06 rate and 4 months
at the FY 07 rate).
- Divide the total modified direct cost amount of the project by the
number of months in the budget period (e.g. $200,000 / 12 = $16,666).
- Multiply the number of months at the first F&A rate by the monthly
modified direct cost amount and the number of months at the second F&A
rate by the monthly modified direct cost amount. (e.g. [$16,666 x 8
x 49.5%] + [$16,666 x 4 x 51.0%] = $33,999 + $65,997 = $99,996)
- Repeat for remaining budget periods.
NOTE: For ease of calculation, you may wish to use the blended rate "F&A Rate
Tables" to calculate the F&A for various budget period start dates.
Do not, however, list the blended rates (e.g. 50.38%) on your budget
page as though they are Northwestern’s actual F&A rate. Instead,
use the budget justification statement shown below.
BUDGET JUSTIFICATION STATEMENT FOR PROPOSAL BUDGETS:
Add the following statement to all new and competitive renewal proposal
budget justifications on federal projects (except NIH modular grants):
F&A has been calculated based on the following DHHS approved rates:
- 49.5% MTDC 9/1/05 - 8/31/06
- 51% MTDC 9/1/06 - 8/31/07
- 51% MTDC 9/1/07 - 8/31/08
- 51% MTDC 9/1/08 - 8/31/09 and thereafter (provisional)
Special Instructions for NIH New and Renewal Applications
In Sections 3.a. through 3.e. of the checklist page, list only the first
F&A rate that will be used during that budget period in the field
marked "Rate applied" but enter the correct (blended) amount of F&A
costs in the $ field. Also check the box below labeled "Off-site, other
special rate, or more than one rate involved" and list the budget
justification statement shown above.
AWARD INSTRUCTIONS
F&A RATES APPLIED ON AWARDS
Use the following chart to identify the F&A rate that applies to
your project. You will need to know the fund source (federal, non-federal),
the project type (research, instruction/training, other sponsored activity,
or clinical trial), whether the project is on-campus or off-campus, the
date the project period began, and in some cases, when the proposal for
the current project period was submitted.
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RESEARCH PROJECTS
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Rate
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Rate applies for what time period?
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Federal Project
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| Project period began
9/1/04 or later |
49.5% MTDC on-campus
51% MTDC on-campus
26% MTDC off-campus
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Expenditures 10/1/05–
8/31/06 *
Expenditures 9/1/06– 8/31/08
All expenditures, all years |
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Project period began 9/1/01 - 8/31/04
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47% MTDC on-campus (provisional)
48% MTDC on-campus
49% MTDC on-campus
48.5% MTDC on-campus
26% MTDC off-campus
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Expenditures through 2/28/02
Expenditures 3/1/02 – 8/31/02
Expenditures 9/1/02 – 8/31/03
Expenditures 9/1/03 – 9/30/05
*
All expenditures, all years
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Project period began < 5/1/96 or 2/23/98 – 8/31/01
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47% MTDC on-campus
26% MTDC off-campus
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All remaining years of competitive segment
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Project period began 5/1/96 – 2/22/98
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48% MTDC on-campus
26% MTDC off-campus
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All remaining years of competitive segment
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| Department of Defense (DoD)
Contracts |
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| Project period
began 9/1/04 or later |
50.5%
MTDC on-campus
52% MTDC on-campus
26% MTDC off-campus |
Expenditures
10/1/05– 8/31/06 *
Expenditures 9/1/06– 8/31/08
All expenditures, all years |
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Non Federal Project
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| Project period began
9/1/04 or later |
56.6% MTDC on-campus
55.2% MTDC on-campus
27.9% MTDC off-campus
27.4% MTDC off-campus |
Expenditures 9/1/04–
9/30/05 *
Expenditures 10/1/05– 8/31/08 *
Expenditures 9/1/04– 9/30/05 *
Expenditures 10/1/05– 8/31/08 * |
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Award resulting from new or competing renewal proposal
submitted 10/1/01 or later
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56.6% MTDC on-campus
27.9% MTDC off-campus
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Expenditures 3/1/02 through 8/31/04; rate provisional
thereafter
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Award resulting from new or competing renewal proposal
submitted <10/1/01
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53.7% MTDC on-campus
26.0% MTDC off-campus
(should reflect the rate used in the proposal)
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All years of the competitive segment
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* Northwestern applied the new DHHS approved rates to
awards made on or after September 1, 2004. Although federal regulations
allowed Northwestern to apply new rates to all transactions from September
1, 2004 forward on these awards, the University did not wish to reach
back and apply the newF&A on funds already expended through 9/1/04-9/30/05.
Northwestern applied the new F&A rates only to transactions from October
2005 going forward on awards received on or after September 1, 2004.
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INSTRUCTION/TRAINING PROJECTS
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Rate
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Rate applies for what time period?
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Federal Project
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Project period began 9/1/04 or later
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50% MTDC on-campus
26% MTDC off-campus
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Expenditures 10/1/05– 8/31/08 *
All expenditures, all years
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Project period began 9/1/01-8/31/04
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59.7% MTDC on-campus (provisional)
49% MTDC on-campus
26% MTDC off-campus
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Expenditures through 2/28/02
Expenditures 3/1/02 -9/30/05 *
All expenditures, all years
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Project period began < 9/1/01
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59.7% MTDC on-campus research
26% MTDC off-campus research
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All remaining years of competitive segment
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Non Federal Project
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| Project period began
9/1/04 or later |
71.5.% MTDC on-campus
77.7% MTDC on-campus
42.4% MTDC off-campus
49.2% MTDC off-campus |
Expenditures 9/1/04–
9/30/05 *
Expenditures 10/1/05– 8/31/08 *
Expenditures 9/1/04– 9/30/05 *
Expenditures 10/1/05– 8/31/08 * |
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Award resulting from new or competing renewal proposal
submitted 10/1/01 or later
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71.5% MTDC on-campus
42.4% MTDC off-campus*
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Expenditures 3/1/02 through 8/31/04; rate provisional
thereafter
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Award resulting from new or competing renewal proposal
submitted <10/1/01
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59.7% MTDC on-campus
26.0% MTDC off-campus
(should reflect the rate used in the proposal)
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All years of the competitive segment
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* Northwestern applied the new DHHS approved rates to
awards made on or after September 1, 2004. Although federal regulations
allowed Northwestern to apply new rates to all transactions from September
1, 2004 forward on these awards, the University did not wish to reach
back and apply the newF&A on funds already expended through 9/1/04-9/30/05.
Northwestern applied the new F&A rates only to transactions from October
2005 going forward on awards received on or after September 1, 2004.
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OTHER SPONSORED ACTIVITIES PROJECTS
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Rate
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Rate applies for what time period?
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Federal Project
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Project period began 9/1/04 or later
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39.0% MTDC on-campus
26.0% MTDC off-campus
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Expenditures 9/1/04– 8/31/08
All expenditures, all years
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Award received in response to a new or competing renewal
proposal submitted 3/1/02 or later
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39.0% MTDC on-campus
26.0% MTDC off-campus
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All expenditures through 08/31/04, provisional rate
thereafter
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Award received in response to a proposal submitted
prior to 3/1/02
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Since the OSA rate did not exist when these proposals
were first submitted, either the Research or Instruction/Training
rate was used. Awards in response to these proposals will retain
the "Research" or "Instruction/Training" rate through the end of
the competitive segment.
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Use project period begin date, rates, and expenditure
time periods as outlined in the Research or Instruction/Training
tables, above.
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Non Federal Project
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| Project period began
9/1/04 or later |
42.1%
MTDC on-campus
43.1% MTDC on-campus
29% MTDC off-campus
30.1% MTDC off-campus |
Expenditures 9/1/04–
9/30/05 *
Expenditures 10/1/05– 8/31/08 *
Expenditures 9/1/04– 9/30/05 *
Expenditures 10/1/05– 8/31/08 * |
|
Award resulting from new or competing renewal proposal
submitted 10/1/01 or later
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42.1% MTDC on-campus
29% MTDC off-campus
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Expenditures 3/1/02 through 8/31/04; rate provisional
thereafter
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Award resulting from new or competing renewal proposal
submitted <10/1/01
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OSA rate did not exist; use Research or Instruction/Training
rate as submitted in the original proposal
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All years of the competitive segment
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* Northwestern applied the new DHHS approved rates to
awards made on or after September 1, 2004. Although federal regulations
allowed Northwestern to apply new rates to all transactions from September
1, 2004 forward on these awards, the University did not wish to reach
back and apply the newF&A on funds already expended through 9/1/04-9/30/05.
Northwestern applied the new F&A rates only to transactions from October
2005 going forward on awards received on or after September 1, 2004.
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CLINICAL TRIALS
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Rate
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Rate applies for what time period?
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Federal Project
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Use federal research rate schedule
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See above
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See above
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Industry Funded
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All trials (investigator-initiated or sponsor-initiated)
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26% TDC (unless existing agreement specifies a higher
rate)
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All years
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"OTHER SPONSORED ACTIVITIES" PROJECTS
Northwestern established an "Other Sponsored Activity" rate for non-federal
projects in October 2001, and for federal projects in the F&A rate
agreement dated 1/28/02.
Examples of "Other Sponsored Activity" include: 1) public service projects,
such as sponsored health and/or community service projects, legal clinics
and public information services; 2) contract for service activities, such
as material testing agreements, Materials Technology Lab coating agreements,
and Center for Public Safety instructional courses; 3) curriculum development
awards and dissertation awards; and 4) sponsored symposia, seminars and
conferences. Investigators should consult with OSR to determine which
rate is appropriate given the nature and location of the proposed activity.
USE OF ON-CAMPUS OR OFF-CAMPUS RATE
Additional guidance will be provided on the use of the off-campus rate.
Until further notice, continue to use the rates based on existing guidance.
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