University of Pittsburgh Indirect Cost Rate Agreement

The University of Pittsburgh is a top-tier research university that consistently ranks among the best in the country. As a research institution, the University of Pittsburgh conducts a wide range of research projects, many of which are funded by external sources, such as government agencies and private foundations. To ensure that research activities are supported adequately, the university has an indirect cost rate agreement in place.

What is an Indirect Cost Rate Agreement?

An indirect cost rate agreement is a contract between a research institution and a funding agency that determines the amount of indirect costs that can be charged to a grant or contract. Indirect costs are expenses that are not directly related to a specific research project but are necessary to support the research activities. These expenses may include facilities and administrative costs, such as rent, utilities, maintenance, and general overhead expenses.

The University of Pittsburgh’s Indirect Cost Rate Agreement

The University of Pittsburgh has an indirect cost rate agreement with the federal government that covers all federally funded research projects. The agreement, negotiated with the Department of Health and Human Services, allows the university to recover indirect costs at a rate of 56.5% of the total direct costs of the project.

This rate is based on the university’s actual indirect costs, as determined by an annual audit. The indirect cost rate agreement is reviewed and renegotiated periodically to ensure that the rate remains fair and reasonable.

The Benefits of an Indirect Cost Rate Agreement

Indirect cost rate agreements provide several benefits to research institutions. They allow the institutions to recover a portion of the costs associated with supporting research activities that are not covered by direct funding. This helps to ensure that research activities are adequately supported and that the quality of the research is not compromised.

Indirect cost rate agreements also provide transparency and consistency in the funding process. They ensure that all research projects are treated fairly and consistently and that the indirect costs associated with each project are accurately reflected in the budget.

Conclusion

The University of Pittsburgh’s indirect cost rate agreement is an essential component of its research activities. It ensures that the university can recover the indirect costs associated with supporting research activities and that research projects are treated equitably. As a top-tier research institution, the University of Pittsburgh remains committed to ensuring that its research activities are supported adequately and that it can continue to conduct groundbreaking research that benefits society.

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