Wayne State University F&A Rate Agreement

Wayne State University F&A Rate Agreement: Understanding the Basics

Wayne State University announced its agreement on F&A (Facilities and Administrative) rates for the next four years in July 2021. The agreement specifies the rates for covering the indirect costs of research. While many researchers are already familiar with the concept of F&A rates, it is essential to understand the specifics of Wayne State University`s F&A rate agreement for the benefit of faculty, researchers, and staff.

What is an F&A Rate?

An F&A rate, also known as an indirect cost rate, is a percentage of the direct costs of research that covers the institutional expenses incurred in support of research activities. These costs typically include overhead, administrative support, equipment depreciation, and other expenses that are not directly related to conducting the research.

The F&A rate is negotiated and agreed upon by the university and the government funding agency for each research project. It is essential to note that not all federal agencies have the same F&A rate, and it may vary depending on the type of research project and funding source.

Wayne State University`s F&A Rate Agreement

Wayne State University`s F&A rate agreement was negotiated with the federal government and covers the period from July 1, 2021, to June 30, 2025. The agreement sets the F&A rates for different types of research activities, including research, instruction, and other sponsored activities, as follows:

Research: 53%

Instruction: 38%

Other Sponsored Activities: 33%

It is worth noting that the F&A rates for clinical trials, industry-funded research, and state-funded research may be different from these rates.

How to Use the F&A Rates

It is essential for researchers to understand the F&A rates as it helps them determine the total budget for a research project. The F&A rate is applied to the direct costs of the research project, which include items such as salaries, equipment, and supplies. For instance, if a research project has direct costs of $100,000, and the F&A rate is 53%, the indirect costs will be $53,000, bringing the total budget to $153,000.

Researchers can use the F&A rate to calculate the total budget for a research project, including indirect costs. It is vital to consider the F&A rate when submitting a grant proposal to ensure that the project`s budget is realistic and that all expenses are covered.


Wayne State University`s F&A rate agreement provides researchers with a clear understanding of the rates for covering indirect costs of research. It is crucial to understand these rates to ensure that the total budget for a research project is correctly calculated. The F&A rates can also help researchers submit realistic grant proposals and ensure that all expenses are covered.