Texas Tech negotiated facilities and administrative (F&A) rates for fiscal years 2023 through 2026 with the Office of Naval Research (ONR)

Percentages

• Sponsored Research: 65%
• Instruction: 53%
• Other Sponsored Activities: 42%
• Off-Campus: 26%

About the F&A Rate

The F&A rate is negotiated between a university and the university's cognizant agency – ONR or Dept. of Health and Human Services (DHHS). Texas Tech recently changed cognizant agencies from DHHS to ONR. Before negotiations began, Texas Tech provided a required proposal documenting the actual costs incurred during our specified base year for such items as space, utilities, general purpose equipment, administrative salaries and benefits, etc.

Costs in these categories have increased significantly since our previous negotiations. Even with the current rate increases, Texas Tech will not be fully recovering the costs for these items.

Research & Innovation has developed ways to mitigate the effect of the increase on faculty research budgets.

For new awards subject to full F&A with an impact on direct costs, 8% will be returned directly to the PI listed on the project. The return will be received at the beginning of each budget period, consistent with the project budget. This return is in addition to the traditional return you may receive from collected F&A. If the program being applied to does not have a cap, the 8% F&A return will not be returned.

The funds should be expended on the project from which it is earned and must be expended within one year of the end date of the project. Any funds left at the end of close out will be returned to OR&I for normal distribution.

This is a temporary solution to address the large rate increase over the next three years. R&I and the Office of the CFO will continue to monitor the situation and may continue this policy beyond three years or modify the terms of the policy as determined by future F&A rate negotiations and as national funding trends evolve.

Current Awards and Non-Competing Continuations

Current active awards will not be affected by the new rates unless, and until, the project enters a competitive cycle. Those projects with ‘out years' already identified in the original award budgets (for example, many NIH 3- or 5-year projects) will continue to use the applicable F&A rate included in the award budget.

Waivers

Consistent with existing Texas Tech policies and procedures, the waiver of any part of the F&A recovery must route through Research Services for approval.