University Of Utah Indirect Rate Agreement

- December 19, 2020

As part of the university`s negotiated agreement, there are three main types of research and development activities D. These are: (1) Sponsored Research, (2) Sponsored Instruction and Training, and (3) Other Sponsored Activities. It is important to choose the right type of activity for a proposal, as it determines the rate of research and development to be used. It is also important to remember that activity is what happens during the project period and not what might happen after the project period. The sponsor supports the activity at the time of the project and, therefore, the type of research and development activity should reflect only what happens during the project period. If in doubt, contact OSP for a guide. Research and development costs are defined in OMB Uniforme Guidance (also known as 2 CFR Part 200) as “costs incurred for a common or common purpose that can use more than one cost objective and cannot be easily attributed to specific cost targets, without the effort being disproportionate to the results achieved.” Research and development costs are sometimes referred to as indirect costs. Utah State University (USU) negotiates the research and development rate with the Office of Naval Research (ONR), the federal scientific authority responsible for overseeing the management of sponsored agreements with the USU. These rates will come into effect on April 24, 2020, for all new, revised and extended activities of the program by tariff agreement of June 24, 2019 if project budgets include all costs necessary to achieve the objectives of the proposal or agreement. These costs are classified as direct or indirect costs: a sponsored project budget should include all costs necessary to achieve the objectives set out in the proposal or agreement. The total cost of a project includes direct costs (researchers` salaries, laboratory needs, travel, etc.) as well as facilities and management (R-D) costs.

Research and development costs are real costs that reimburse actual institutional expenses that support extraterrestrial activities but cannot be directly billed to a grant or contract. Costs are the result of common services such as libraries, the operation and maintenance of physical facilities, incidental costs, general, departmental and sponsored project management, as well as depreciation or use allowances for buildings and equipment. Renunciations are rarely given, and only in exceptional cases. Before a waiver can be established, it must be reviewed by the PSO and ultimately approved by the Vice-President for Research. The final decision on research abandonments or reductions is left to the discretion of the Vice-President in charge of research. The N.A. Lead Investigator is not empowered to negotiate or accept reduced indirect cost rates by a sponsor. All research and development costs within the university are allocated to pools of costs related to primary functions. A portion of each cost pool is then allocated to the research company in accordance with the guidelines of Circular A-21.

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