The rate, expressed as a percentage of a base amount established by negotiation with the cognizant federal agency on the basis of the institution's projected costs for the year and distributed as prescribed in OMB Circular A-21.§ At Texas State, indirect costs are applied to a modified total direct cost (MTDC) base. The indirect cost rate is charged on a set of direct costs known as an indirect cost base.
The ratio, expressed as a percentage, of the total indirect cost to the direct cost base (modified total direct costs).
A percentage (rate) applied to the sponsor supported project costs. The rate is multiplied by a base amount, the product of which is the indirect costs the grantee will recover from the sponsor. The base amount can be the total direct costs (TDC) charged to a contract/grant or a portion of total direct costs. The later is usually referred to as modified total direct costs (MTDC). The rate, and base to which the rate is applied, are determined by negotiations with a sponsor. UC Davis has negotiated a number of different rates depending on the location (i.e. on-campus/off-campus), and the nature of the project (i.e. research, public service, instruction) Rates and base amounts for Federal contracts/grants are negotiated with the U.S. Department of Health and Human Services (DHHS). For non-Federal sponsors the indirect cost rates and base amounts are negotiated individually with each sponsor/program.