The document, released by the Council on Governmental Relations (COGR), addresses the ongoing challenges and pressures facing the process of Facilities and Administrative (F&A) cost rates and reimbursement for research institutions during the COVID-19 pandemic. It highlights how the pandemic has disrupted procedural norms, particularly in the development of F&A cost rate proposals, despite relative stability in cost reimbursement itself. The document emphasizes the critical need for research institutions to adapt by understanding the specific impacts of COVID-19 on recent fiscal years, separating immediate fiscal calculations from longer-term considerations, and leveraging institutional expertise in negotiations with federal agencies.
Key recommendations include maintaining full on-campus F&A cost rates when appropriate, advocating for fair and transparent reimbursement processes, and fostering strong relationships with cognizant federal agencies such as the Department of Health and Human Services—Cost Allocation Services (DHHS-CAS) and the Office of Naval Research (ONR). The paper underscores the importance of collaborative dialogue among federal agencies, research institutions, and leadership to ensure that the F&A reimbursement system remains fair, reliable, and supportive of the U.S. research enterprise. By doing so, it aims to minimize disruptions caused by the pandemic and uphold the essential partnership between the federal government and research institutions.
