UC Davis Rate Agreement: What You Need to Know
The UC Davis Rate Agreement or UDRA is an agreement between the university and the Department of Health and Human Services (HHS) that governs the billing rates for research costs incurred by the university. The agreement is issued every four years and sets forth the federally negotiated rates for reimbursement of indirect costs associated with research projects.
The UDRA is significant for researchers at UC Davis, as it determines the amount of indirect costs they can charge to sponsored projects. Indirect costs are expenses incurred that are not directly related to the research activities but are necessary to support those activities, such as building maintenance, utilities, and administration expenses. These costs are typically calculated as a percentage of the direct costs of a research project.
The UDRA specifies the maximum indirect cost rates that UC Davis can charge for research projects funded by federal agencies, including the National Institutes of Health (NIH), the National Science Foundation (NSF), and the Department of Defense (DoD). The agreement also covers other sponsored projects, such as those funded by industry partners.
The most recent UDRA agreement took effect on July 1, 2019, and will remain in effect until June 30, 2023. Under the current agreement, the university is allowed to charge a maximum indirect cost rate of 58% on research projects funded by federal agencies. The rate is based on a formula that takes into account the type of activity being performed, the location of the research, and other factors.
It is important to note that the UDRA is not a fixed rate that applies to all research projects. Instead, it is a negotiated rate that applies to federally funded research and varies based on the specific project and sponsor. Researchers must provide a detailed budget and justification for the indirect costs charged to each project, and the costs must be reasonable, allowable, and allocable in accordance with federal regulations.
The UDRA also has implications for proposal development, as it affects the direct cost budget for research projects. Direct costs are the expenses directly related to conducting the research, such as salaries, supplies, and equipment. The allowable direct costs are limited by the total project budget, which is based on the allowable indirect cost rate.
In summary, the UC Davis Rate Agreement is a crucial component of the university`s research funding strategy. By negotiating a maximum indirect cost rate with federal agencies, the university can recover a portion of the indirect costs associated with research activities. Researchers must ensure that the costs charged to their projects are reasonable and justifiable, and proposal budgets must be developed in compliance with the UDRA and federal regulations.
As a researcher at UC Davis, it is important to understand the UDRA and its implications for your research projects. Consulting with the appropriate offices and reviewing the UDRA guidelines can help ensure that you are following the rules and maximizing your funding opportunities.