Northern Illinois University

Sponsored Projects

Facilities & Administrative (F&A) Costs

Facilities and Administrative (F&A) costs are requested to cover real costs to the University. These costs are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity. F&A costs are synonymous with Indirect Costs.

F&A costs are charged on either a modified total direct cost (MTDC) base or a total direct cost (TDC) base. Please see the definitions below.

For on campus projects (projects conducted primarily on the NIU campus), the F&A rate is 45% MTDC. 
For off campus projects, the F&A rate is 26% MTDC. Please follow the link for information on how to determine if a project is considered an off campus project.

NIU F&A Rate Agreement 

Modified Total Direct Cost (MTDC) Base

If the sponsor allows the University to use our negotiated F&A rate, the costs are charged on the MTDC base.

An MTDC base consists of:

  • salaries and wages
  • fringe benefits
  • materials and supplies
  • services
  • travel services
  • the first $25,000 of each subcontract

F&A costs are not charged on equipment, capital expenditures, patient care, tuition remission, rental cost of off-site facilities, scholarships, fellowships, and the portion of each subcontract in excess of $25,000.

Total Direct Cost (TDC) Base

If the sponsor requires that we use a reduced rate, and does not stipulate any exclusions, F&A costs are taken on all direct costs.

OSP requires written confirmation from the sponsor when a reduced rate is allowed. Rates published in a solicitation are acceptable.

Off-campus Facilities & Administrative (F&A) rate

A determination for the off-campus Facilities & Administrative (F&A) rate is based upon the following:

1) work that is conducted at a site for which Northern Illinois University does not provide rent or maintenance or for which rent is paid from external funds and;

2) at least 60 consecutive days’ duration are spent in off-campus work; or, if the project is of less than 60 days’ duration; the entire project’s activities take place off-campus.

Participation in professional conferences does not count toward the 60 days.