Texas Tech University

New F&A Rate Set

The university has negotiated a new Facilities and Administrative Cost Rate Agreement. The new F&A rates are:

On-campus research and instruction 49%
On-campus projects other than research and instruction 37%
All off-campus projects 26%

The new rates are effective immediately for proposals. Existing awards and proposals submitted using prior rates will continue with the old rates unless a new budget is negotiated or a new increment allows an increase in the rate. The Office of Research Services will be able to answer questions as to which rate is appropriate in a given circumstance. The full rate agreement is posted on the ORS website.

The new rate is the result of a careful cost study and is competitive with rates of other universities in the state, although lower than the rates of UT Austin (54.5% for on-campus research). The new rate will increase the university’s recovery of indirect costs, an important source of support for infrastructure needs. The F&A rate has increased more rapidly than at most universities, and is an indicator of our progression towards becoming a major research-intensive, Tier One, university.