Frequently Asked Questions
I am new to the institution, how do I determine the status of our Indirect Cost Rate?

Check the files for a Negotiation agreement and the transmittal letter from your cognizant agency. The transmittal letter will provide the base year for the next rate proposal. If not available, contact, and we can provide your status and answer any other questions you may have.

Short form vs. the long form rate proposal?

The institution’s filing status is determined by the amount of Federal research it receives. The threshold for the Long form is usually $10 million.

I understand that the MTDC base is now available under the short form rate methodology. How do I determine if we should use an MTDC or S&W base?

As part of our service, we will conduct a diagnostic review to determine whether your institution should file using the Salaries and Wages or Modified Total Direct Cost (MTDC) methodology. Most short form institutions are finding the MTDC method more equitable for cost recovery and for rate comparison purposes.

If an institution goes beyond the $10 million threshold for federally sponsored funds, must they move to a long form proposal?

Not necessarily. Other factors can be considered that will allow an institution to continue using the short form.

We are seeking our first indirect cost rate. What is required to obtain a rate?

Your cognizant agency will determine your eligibility for obtaining your first rate. As a rule, you must have an awarded grant.

If we engage with, how do we meet to review the data provided and the drafts of the rate proposal? can easily accept and transmit data via the internet. We are currently using an exceptional internet tool called “Go To Meeting” to interact with our clients in real time. This approach has resulted in a real savings in time and expenses for our clients.

What are the payment arrangements for the diagnostic, rate proposal package and negotiation?

The institution receives the first bill when the proposal is submitted to the cognizant agency. The final payment is due when we have finalized the OMB A-21 rate negotiation process and you have received the negotiation agreement. (Depending on the workload of the cognizant agency, finalizing can take 6-9 months).

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*IndirectCostRates.Com is an internet based service specializing in Indirect Cost proposals from submittal through negotiation. If your rate proposal is due or past due, assure compliance by contacting us for a budget sensitive quote.