Indirect Costs

ISBER will assist you with calculating the Indirect Costs (IDC) in your research budget (contact Paula Ryan, xt. 8129).

Indirect Costs (IDC) a.k.a. Facilities and Administrative (F&A) Costs represent those expenses that cannot be easily identified to any specific project but are incurred for common or joint objectives. They include operation and maintenance of facilities, including building depreciation, library expenses, space, utilities, payroll, accounting, and other services. The indirect cost rate is determined by the type of project i.e. research, instruction, or other. The rate is also determined by whether the project is performed on-campus or off-campus. See the negotiated rate agreement for UCSB.

Proposals must include the negotiated rate unless the UC Office of the President has approved a waiver of some or the entire indirect cost rate. If the sponsor has written guidelines that indicate they do not reimburse indirect costs at the full rate, Sponsored Projects will verify if an existing waiver exists. If not, Sponsored Projects will request a waiver from UCOP.

UCSB's indirect cost is assessed on Modified Total Direct Costs (MTDC). The MTDC base consists of salaries and wages, fringe benefits, materials, supplies, services, travel, and subcontracts (up to the first $25K of each). The costs of equipment, capital expenditures, tuition remission, Grad Student Health Insurance Program (GSHIP), rental costs of off-site facilities, scholarships, fellowships, the portion of each subcontract in excess of $25K, and the total of each MCA is excluded from the MTDC base.

In the event of a full or partial waiver of indirect costs, the base on which indirect costs are assessed is defined in the waiver, rather than assessed on MTDC.