What is the indirect rate and why is it so high?

The indirect rate (also referred to as F&A [Facilities and Administrative Costs] and Overhead) are real costs that the University incurs during the performance of a grant funded project and the inclusion of F&A costs in the budget provides a means for the University to be reimbursed for those costs (office space, lights, IT, etc.). There are separate rates for on- and off-campus organized research, instruction and other sponsored activities. Please reference the Summary of F&A Rates at the University of Central Florida (Indirect Rates) on the Forms tab. Most on-campus SDES programs will fall under “Other Sponsored Activity” at the 30% rate. The majority, if not all SDES grants, the Direct + Indirect = the total award amount. For example, if ABC agency is awarding $100,000 for one year and the grant falls under “Other Sponsored Activity” then… $70,000 (direct) + $30,000 (indirect) = $100,000 total award.

However, always follow the requirements of each individual RFP. SDES does not currently conduct any “Organized Research” grants but it is likely in the future. On-campus “Organized Research” grants are structured different and have an indirect rate of 46%. Typically if the award is $1 million they will award the $1 million + indirect rate in addition to it. (e.g. $1,000,000 (direct) + $460,000 (indirect 46%) = $1,460,000 total award.