Office of Research

Facilities and Administrative (Indirect) Costs

The following facilities and administrative cost rates apply to grants, contracts, and other agreements funded by federal government agencies. The rates listed below should be used for applications to all federal government agencies when requesting support for research or instruction projects unless there is a statutory limit at a rate lower than the negotiated rate.

Baylor On-Campus and Off-Campus Rates

July 1, 2014 - June 30, 2015

Research Rates, 
Baylor On-Campus - 57.5%
Baylor Off-Campus - 27.1%
Date of DHHS Agreement - May 21, 2014

Instruction Rates
Baylor On-Campus, 36.0%
Baylor Off-Campus, 26.0%
Date of DHHS Agreement - May 21, 2014

Other Sponsored Activities Rates
Baylor On-Campus, 37.0%
Baylor Off-Campus, 26.0%
Date of DHHS Agreement - May 21, 2014

Please note that the VAMC is considered on-campus.

July 1, 2015 - June 30, 2016

Research Rates, 
Baylor On-Campus - 58.5%
Baylor Off-Campus - 27.1%
Date of DHHS Agreement - May 21, 2014

Instruction Rates
Baylor On-Campus, 36.0%
Baylor Off-Campus, 26.0%
Date of DHHS Agreement - May 21, 2014

Other Sponsored Activities Rates
Baylor On-Campus, 37.0%
Baylor Off-Campus, 26.0%
Date of DHHS Agreement - May 21, 2014

Please note that the VAMC is considered on-campus.

July 1, 2016 - June 30, 2017

Research Rates
Baylor On-Campus - 58.5%
Baylor Off-Campus - 26.0%
Date of DHHS Agreement - March 21, 2014

Instruction Rates
Baylor On-Campus, 36.0%
Baylor Off-Campus, 26.0%
Date of DHHS Agreement - March 21, 2014

Other Sponsored Activities
Baylor On-Campus, 37.0%
Baylor Off-Campus, 26.0%
Date of DHHS Agreement - March 21, 2014

Please note that the VAMC is considered on-campus.

Rates at Affiliated Institutions

Baylor College of Medicine receives awards for work performed by Baylor employees in affiliated hospitals including Baylor St. Luke's, Houston Methodist, Texas Children's, The Institute for Rehabilitation and Research, and Harris Health System. Each of these hospitals has an affiliate rate which should be added to the Baylor off-campus rate for those awards to Baylor College of Medicine that are performed at the affiliated hospital. These affiliated rates are listed below:

July 1, 2014 - Sept. 30, 2014

HCHD
Off-Campus: 27.1%
Affiliate Rate: 24.0%
Total Combined Rate: 51.1%
Affiliate DHHS Date: March 15, 2010

TCH
Off-Campus: 27.1%
Affiliate Rate: 30.2%
Total Combined Rate: 57.3%
DHHS Date: June 25, 2010

TCH - Other Sponsored Activity
Off-Campus: 26.0%
Affiliate Rate: 11.5%
Total Combined Rate: 37.5%
DHHS Date: June 25, 2010

TIRR
Off-Campus: 27.1%
Affiliate Rate: 12.0%
Total Combined Rate: 39.1%
DHHS Date: July 1, 2004

TMH
Off-Campus: 27.1%
Affiliate Rate: 34.5%
Total Combined Rate: 61.6%
DHHS Date: Jan. 19, 2012

Baylor St. Luke's
Off-Campus: 27.1%
Affiliate Rate: 0
Total Combined Rate: 27.1%
DHHS Date: Aug. 4, 2004

CHOSA
Off-Campus: 27.1%
Affiliate Rate: 0
Total Combined Rate: 27.1%

CNRC
Total Combined Rate: 40.0%
DHHS Date: May 21, 2014

Oct. 1, 2014 – June 30, 2016

HCHD
Off-Campus: 27.1%
Affiliate Rate: 24.0%
Total Combined Rate: 51.1%
Affiliate DHHS Date: March 15, 2010

TCH
Off-Campus: 27.1%
Affiliate Rate: 32.5%
Total Combined Rate: 59.6%
DHHS Date: Aug. 7, 2014

TCH - Other Sponsored Activity
Off-Campus: 26.0%
Affiliate Rate: 13.5%
Total Combined Rate: 39.5%
DHHS Date: Aug. 7, 2014

TIRR
Off-Campus: 27.1%
Affiliate Rate: 12.0%
Total Combined Rate: 39.1%
DHHS Date: July 1, 2004

TMH
Off-Campus: 27.1%
Affiliate Rate: 34.5%
Total Combined Rate: 61.6%
DHHS Date: Jan. 19, 2012

Baylor St. Luke's
Off-Campus: 27.1%
Affiliate Rate: 0
Total Combined Rate: 27.1%
DHHS Date: Aug. 4, 2004

CHOSA
Off-Campus: 27.1%
Affiliate Rate: 0
Total Combined Rate: 27.1%

CNRC
Total Combined Rate: 40.0%
DHHS Date: May 21, 2014

July 1, 2016 - June 30, 2018

HCHD
Off-Campus: 26.0%
Affiliate Rate: 24.0%
Total Combined Rate: 50.0%
Affiliate DHHS Date: March 15, 2010

TCH
Off-Campus: 26.0%
Affiliate Rate: 32.5%
Total Combined Rate: 58.5%
DHHS Date: Aug. 7, 2014

TCH - Other Sponsored Activity
Off-Campus: 26.0%
Affiliate Rate: 13.5%
Total Combined Rate: 39.5%
DHHS Date: Aug. 7, 2014

TIRR
Off-Campus: 26.0%
Affiliate Rate: 12.0%
Total Combined Rate: 38.0%
DHHS Date: July 1, 2004

TMH
Off-Campus: 26.0%
Affiliate Rate: 34.5%
Total Combined Rate: 60.5%
DHHS Date: Jan. 19, 2012

Baylor St. Luke's
Off-Campus: 26.0%
Affiliate Rate: 0
Total Combined Rate: 26.0%
DHHS Date: Aug. 4, 2004

CHOSA
Off-Campus: 26.0%
Affiliate Rate: 0
Total Combined Rate: 26.0%

CNRC
Total Combined Rate: 40.0%
DHHS Date: May 21, 2014

Rate Agreements

BCM/CNRC Rate Agreement

Harris Health System Rate Agreement

TCH Rate Agreement

TIRR Rate Agreement

TMH Rate Agreement

BCM Non-Government Facilities and Administrative Cost Rates

Baylor College of Medicine accepts awards and gifts from non-government, non-profit sponsors. Awards received from non-government, non-profit sponsors and donors are accepted at the published rate established by the respective sponsor or donor.

Basic Research

Effective July 1, 2014, a rate of 57.5 percent is applicable to all gifts, grants, contracts, and other agreements for research received from for-profit sponsors and donors. This 57.5 percent rate is applied regardless of location of the work. The for-profit rate of 57.5 percent is applied against a Modified Total Direct Cost (MTDC) Base. Effective July 1, 2015, a rate of 58.5 percent is applicable to all gifts, grants, contracts, and other agreements for research received from for-profit sponsors and donors. This 58.5 percent rate is applied regardless of location of the work. The for-profit rate of 58.5 percent is applied against a Modified Total Direct Cost (MTDC) Base.

Clinical Trials

35 percent: industry-funded clinical trial rate, regardless of location; this includes investigator-initiated clinical trials if funded by industry. The rate is applied to all budgeted items ( e.g., patient care costs, personnel and any invoiceable  items, excluding IRB fees).

Definitions

The following definitions may be helpful in determining your appropriate indirect cost rate:

Total Direct Cost (TDC) Base:
All costs directly charged to the project.

Modified Total Direct Cost (MTDC) Base:
All salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000. The on-campus rate shall be applied to the first $25,000 of each subcontract.

Equipment:
An article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.

BCM Off-Campus:
For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project(s), the off-campus rate will apply. Actual costs will be apportioned between on-campus and off-campus components. Each portion will bear the appropriate rate.

BCM On-Campus:
For all activities performed at the locations listed below, the BCM on-campus rate will apply:

The BCM main buildings, the Baylor Faculty Center, the Baylor Clinic, the Michael E. DeBakey Veterans Affairs Medical Center, Alkek Tower (at Fondren-Brown), The Neurosensory Center, the Family Practice Center, the McGovern/Nabisco Building, Scurlock Tower, and Smith Tower.

Summary
BCM's facilities and administrative cost rates are established in accordance with the cost principles outlined in OMB Circular A-21 and agreed upon in negotiation with the federal government. All proposals must request the rates shown unless the Senior Vice President and Dean of Research has approved a reduced rate.