F&A Rate Proposal Development

What is the F&A Rate?

Facilities & Administrative (F&A) rates are used to recover costs spent on sponsored projects that cannot be directly attributed to a particular project. These are often called indirect costs. Costing Policy & Analysis calculates, proposes, and negotiates F&A rates with the federal government (Department of Health and Human Services).

UC Davis' F&A Rate Agreement is negotiated with the Department of Health and Human Services every three to five years and is derived through a complex calculation involving space usage and the following cost pools:

Facilities Cost Pools:

  1. Building depreciation
  2. Equipment depreciation
  3. Interest
  4. Operations & maintenance (utilities, maintenance, etc.)
  5. Library services

Administration Cost Pools: The Administrative cost pools are "capped" at 26.0 percent, regardless of what these costs actually are.

  1. General administration, 
  2. Departmental administration, 
  3. Sponsored projects administration; and
  4. Student services administration.

Why is the Space Survey Important?

The space survey is used to help develop UC Davis' F&A cost rate proposal. The functional use of space is the most critical part of the F&A proposal. As a result, Federal reviewers clostly scrutinize survey results for accuracy.

The space survey classifies rooms baed on the activities performed in the rooms, as well as the room's occupants. Space surveys are used to allocate the following F&A costs to organized research, instruction, and other functions:

  • Building depreciation
  • Equipment depreciation
  • Interest
  • Operations & maintenance (utilities, maintenance, etc.)

These documents can assist with further understanding the F&A process and conducting the space survey.

Supplemental content

Costing Policy & Analysis