* Not included in total for full-time benefited - rate changes effective January 1, 2018.
**Applicable to Research Assistants who take health insurance.
In accordance with our negotiated agreement with the Department of Health and Human Services, the following Predetermined Rate(s) should be used until further notice.
Date of Agreement: December 1, 2016
Applicable to: Rate Base Period
- Research on campus (Predetermined): 53% MTDC* July 01, 2016 - June 30, 2017
- Research on campus (Predetermined): 55% MTDC* July 01, 2017 - June 30, 2018
- Research on campus (Predetermined): 56.50% MTDC* July 01, 2018 - June 30, 2020
- Research on campus (DOD Contract)(Predetermined): 55% MTDC* July 01, 2016 - June 30, 2017
- Research on campus (DOD Contract)(Predetermined): 57% MTDC* July 01, 2017 - June 30, 2018
- Research on campus (DOD Contract)(Predetermined): 58.50% MTDC* July 01, 2018 - June 30, 2020
- Research off campus **(Predetermined): 26% MTDC* July 01, 2016 - June 30, 2020
- Research on campus (Other Sponsored Activities)(Predetermined): 30% MTDC* July 01, 2016 - June 30, 2020
- Research off campus (Other Sponsored Activities)**(Predetermined): 26% MTDC* July 01, 2016 - June 30, 2020
- Research on campus (Instruction)(Predetermined): 50% MTDC* July 01, 2016 - June 30, 2020
- Research off campus (Instruction)**(Predetermined): 26% MTDC* July 01, 2016 - June 30, 2020
*MTDC = Modified Total Direct Costs: Total direct costs excluding capital expenditures ( buildings, individual items of equipment over $1000, alterations and renovations), that portion of each subaward in excess of $25,000, patient care, rental/maintenance of off-site activities, tuition remission, scholarships and fellowships.
**The Off Campus research rate applies only to activities of significant duration performed in facilities not owned by the University and to which rent is directly allocated.
The indirect cost rate is a percentage of Modified Total Direct Costs negotiated and approved by the Department of Health and Human Services. This means that when proposals for grants and contracts are submitted through the Office of Research Administration, a percentage of the dollar value of the Modified Total Direct costs(MTDC) requested in the grant is added to the MTDC, resulting in the total project cost.
To support growth in research, the University of Massachusetts Lowell provides discretionary funds for reinvestment in research to the PI and co-PIs, centers, and colleges equivalent to the percentages of indirect costs recovered listed below.
From a baseline of 51%, the monies from indirect costs are divided according to the following formula:
- 41% to UMass Lowell Finance and Operations
- 25% to the Principal Investigator/Co-Principal Investigators (distribution between PI and co-PIs is defined by effort)
- 12.5% to the UMass Lowell Stabilization Fund
- 7.5% to the Provost
- 7% to the College
- 7% to the Center (if no University Research or Engagement Center is involved, this 7% will also go to the College, or up to 4% to the Department and the balance to the College)
The difference between the current federally negotiated rate and the baseline of 51% goes to building debt financing.
Overhead funds must be spent in accordance with the ORA Overhead Policy available on the Policies and Procedures section of our website. Monies must be expended "for purposes of instruction, research, tests, invention, discovery, development or engineering consistent herewith."
Regional Audit Office
D.H.H.S. - O.I.G.
Office of Audit Services
John F. Kennedy Federal Building
Boston, MA 02203
Indirect Cost Audit Office
Regional Administrative Support Center
Division of Cost allocation
26 Federal Plaza, Room 41-118
New York, NY 10278
Office of Naval Research, Boston Regional Office
495 Summer Street
Boston, MA 02210-2109