Advocacy
How facilities and administrative (F&A) costs support basic science research
What are F&A costs?
Facilities and administrative (F&A) costs, also known as indirect costs, are critical expenses that support federally funded research. From security mechanisms that protect research to high-speed data processing, F&A costs fund the essential infrastructure and compliance requirements that enable American research institutions to be at the forefront of scientific innovation.
How are F&A costs funded?
Institutions negotiate F&A cost reimbursement rates with the federal government through a rigorous process. The federal government only allows certain expenses to be included as part of an institution’s F&A reimbursement rate and reassesses each institution’s rate every two to four years.
Universities also contribute their own resources for research-related expenses that federal grants are not able to cover.
Are F&A costs used to subsidize other parts of an institution?
No. The Office of Management and Budget provides clear rules (2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), which require that F&A cost reimbursement rates only be based on research facilities, operations and support used by federally funded research. It cannot be used for education or other university facilities or activities.
Why are F&A costs important?
Without F&A funding, institutions would struggle to maintain essential infrastructure, ensure regulatory compliance and support cutting-edge research. Reduced F&A funding could:
- Increase the financial burdens on institutions, limiting available research opportunities.
- Reduce compliance with federal and ethical standards due to limited staffing and overstretched resources.
- Weaken U.S. research competitiveness by lessening our research productivity and innovation.
Investing in the future of research
F&A costs are research costs. They are the foundation that advances innovation and allows research to thrive. From maintaining state-of-the-art laboratories to keeping compliance with regulations, these funds keep American institutions at the forefront of groundbreaking science.