Indirect Cost Rate for Industry-Funded Studies

Effective December 1, 2019 all industry-funded clinical study agreements will be negotiated with a 36% indirect cost rate. These costs are also sometimes called “facilities and administrative costs (F&A)” or “overhead.” Indirect costs, as defined by the Office of Management & Budget in the Uniform Guidance at 2 CFR 1108.230, are those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. Project specific administration and facility costs are not recovered within the 36% indirect rate and will be negotiated as direct costs within the budget.