The University Record, November 23, 1992

U negotiates new indirect cost recovery rate for federally-sponsored research

The U-M has completed negotiations with the federal Department of Health and Human Services (DHHS), establishing a new indirect cost rate of 52 percent applicable to federally sponsored research projects.

The three-year agreement is retroactive to the beginning of the current fiscal year (July 1, 1992). The negotiated rate replaces the 47.2 percent rate that was imposed by DHHS.

The U-M's previous indirect cost rate was 56 percent. The four-point difference will cost the U-M approximately $4 million annually that must be made up from the general fund.

Details on the new rate are outlined in the DRDA: Research Notes section on page 12.