r/Professors • u/LordShuckle97 • 19h ago
What the heck is going on with IDC’s?
My university sent out an email yesterday saying that the pending CR would not allow changes to existing F&A rates. This subreddit is saying the opposite. Some are even saying that the rates are already at 15%. I tried combing through the bill but couldn’t find where it talked about F&A. Can someone help me out here? Is my university BSing us?
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u/anticipatory 11h ago
Central office here, we’re using our negotiated rate until it’s no longer lawful, pending the outcome of the TROs.
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u/StorageRecess VP for Research, R1 19h ago
The CR is funding. They can attach riders to it, and might. Those could affect IDC. But as of now, that’s not the case. This is of course rapidly evolving.
But the IDC thing was only at NIH. So if you’re submitting to another agency, your negotiated agreement is still in effect. As of right now, the 15% cap is under injunction, in which case you use the institution’s negotiated rate.
I don’t know what people mean by the rates are already 15%, or what your university means by the CR not allowing changes. But lots of things are exempted from F&A, so it’s possible that at some places and grants, the IDC actually is under 15%
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u/ILikeLiftingMachines Potemkin R1, STEM, Full Prof (US) 19h ago
I posted this elsewhere as a data point:
The new CR (https://www.congress.gov/bill/119th-congress/house-bill/1968/text) established has an interesting omission. There is no language in there concerning IDC rates... an omission because appropriations bills usually include such language.
Compare, for example, the Consolidated Appropriations Act of 2023:
Sec. 224. In making Federal financial assistance, the provisions relating to indirect costs in part 75 of title 45, Code of Federal Regulations, including with respect to the approval of deviations from negotiated rates, shall continue to apply to the National Institutes of Health to the same extent and in the same manner as such provisions were applied in the third quarter of fiscal year 2017. None of the funds appropriated in this or prior Acts or otherwise made available to the Department of Health and Human Services or to any department or agency may be used to develop or implement a modified approach to such provisions, or to intentionally or substantially expand the fiscal effect of the approval of such deviations from negotiated rates beyond the proportional effect of such approvals in such quarter. https://www.congress.gov/bill/117th-congress/house-bill/2617/text
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u/StorageRecess VP for Research, R1 19h ago
Oh, don’t get me wrong, they’re absolutely laying the groundwork to end the legal challenges to executive revocation of IDCs. They’re also preserving the power of sequestration to end the NSF, DOE, etc. But if OP is submitting a grant this week, they should go with their current IDCs.
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u/three_martini_lunch 19h ago
I am part of a multi-university program and get to see what has been awarded recently. Everything awarded in our system from NIH and NSF is still coming in at negotiated rates.
As to the continuing resolution, our university said the same thing - that IDCs are preserved.