Facilities and Administrative (F&A) Reductions or Waivers, Guidelines on

Purpose

Facilities and Administrative (F&A) costs, also known as Indirect Costs, are a critical component of our research resources as they support the operation, maintenance and administration of our research infrastructure. On rare occasions, a reduction in or waiver of F&A may be requested and approved. This document describes the policy and procedures for addressing such requests.

General Principles

  • The F&A rate is negotiated with our cognizant federal agency (DHHS), and it is important that the institution maintain a consistent and transparent approach in recovering the F&A from all funding agencies.
  • Any reduction or waiver of F&A should be regarded as “voluntary committed cost sharing” on the award under consideration.
  • An investigator is not authorized to negotiate a reduction in or waiver of F&A costs with the sponsor on any sponsored project.

Guidelines

  • It is the policy of Boston University to apply the University’s full relevant F&A rate to all externally sponsored projects.
  • The University will accept a lower F&A rate whenever there is an established written policy of the sponsor that limits the allowable indirect costs. In those cases, Boston University will charge the maximum allowable rate, which is always published in the sponsor’s funding program information. Examples include private not-for-profit foundations, and certain federal grants (training grants, SIG, facility improvements, etc). Established F&A rate caps for many not-for-profit organizations and federal agency programs that fall under this category can be found on the Sponsored Programs website, and a request for reduction in or waiver of F&A is not required for sponsors listed there. For sponsors not on Sponsored Program’s list, please contact Sponsored Programs at ospera@bu.edu. Sponsored Programs, in collaboration with Foundation Relations and Corporate Research & Contracting when appropriate, will inquire on behalf of the researcher regarding the sponsor’s F&A policy.
  • In the case of industry-sponsored clinical trials, which do not make use of the institutional research facilities, Boston University’s policy is to accept a reduced F&A rate of 30% of the total direct costs, including all services provided by the University (such as, but not limited to IRB and pharmacy).
  • Fee-for-service agreements that meet the exception criteria in this guidance are eligible for a reduction in or waiver of F&A.
  • If a request for reduction in or waiver of F&A is granted, the school or college will forgo any F&A distribution associated with that award.

Exceptions

Under very special circumstances defined by criteria listed below, a principal investigator (PI) may request a reduction or waiver of F&A.

Criteria for F&A Reduction or Waiver

BU may consider a reduction in or waiver of F&A in certain rare situations, which may include, but are not limited to, the following:

  • The proposed project is relatively small (corresponding to a direct cost of $100,000 or lower);
  • The proposed project requires minimal effort and/or resources to administer;
  • The proposed project will significantly assist a junior faculty member in establishing their research career.

Procedures

  • Requests for reduction in or waiver of F&A are NOT necessary for sponsors with established F&A rate caps listed on the Sponsored Programs website.
  • Requests for reduction in or waiver of F&A must be made in writing on the proposal summary form (PSF), along with the required documentation described below either included on the PSF or provided as a separate attachment. This requires the signatures of the PI, the Department Chair, and the Dean (or the Dean’s designated Associate Dean) before submission to the Associate Vice President of Sponsored Programs (dbaldwin@bu.edu) for approval.
  • Required documentation includes:
    • A copy of and a link to the sponsor F&A stipulation/policy: If no such policy exists in writing, a written statement documenting the sponsor’s restrictions on F&A reimbursement from the program officer of the sponsor.
    • Budget and budget justification, including the difference between the applicable full University F&A rate and the requested F&A.
    • A justification for a reduction in or waiver of F&A. Please use the comments section on the PSF.
  • As a matter of policy, F&A reductions and waivers are RARELY granted for foreign sponsors or for-profit organizations, (i.e., corporations/industry).

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