The Council on Governmental Relations (COGR), representing 190 leading research universities and institutions conducting over $60 billion in annual research, conducted its 2017 Survey of Facilities & Administrative (F&A) Rates to analyze trends and understandings in the reimbursement of indirect research costs. F&A costs, also referred to as indirect or research operating costs, are essential expenditures supporting research infrastructure and compliance, complementing the direct costs of specific research activities. The survey, carried out between August and November 2016 and comprising responses from 145 institutions, provided a comprehensive overview of F&A rates, negotiation experiences, and institutional characteristics, with detailed responses segmented by public and private institutions and by cognizant oversight agency.
Key findings indicate that, over the decade from FY 2007 to FY 2017, average negotiated F&A rates at major research universities increased modestly at an annualized rate of less than 1%. Despite this increase, data from the National Institutes of Health (NIH) and other agencies show that the proportion of F&A costs relative to total research awards has remained stable at roughly 27–28%, ensuring continued prioritization of direct research costs. The stability in allocation, even with some upward rate trends, is attributed to more fact-based F&A negotiations and the growth in university contributions to research infrastructure, particularly as the federal share of research funding declines. The report underscores the necessity of adequate F&A reimbursement to maintain high-quality research environments and compliance, while also highlighting ongoing university investment and commitment to sustaining the nation’s leading role in research, even as external funding landscapes shift.
