FAQ's on F&A/IDC

What are indirect costs?

Indirect costs (also known as IDC, F&A costs, or overhead costs) are those costs associated with the conduct of sponsored projects that are incurred for common or joint objectives and therefore are not readily identifiable with a specific project. These costs are allowable costs incurred by the University in support of the performance of sponsored projects. GW’s IDC rates are negotiated through a formal process with the federal government and are computed on the basis of actual costs incurred. Additional information can be found on the Office of the Controller’s F&A Rate website.

Where can I find GW’s indirect cost rates?

GW’s current negotiated indirect cost rates can be found on the Office of the Controller’s F&A Rate website.

Am I expected to budget indirect costs on my sponsored project?

Yes, as indicated in GW’s Sponsored Projects Handbook, the University requires that the applicable F&A rate must be incorporated into all proposal budgets for sponsored projects.

What is acceptable documentation from a sponsor that shows they will only accept a lower indirect cost rate than GW’s negotiated rate?

If the sponsor’s indirect cost rate is in a published policy or funding announcement, then an indirect cost waiver would not be required. This is considered an exception to the GW F&A rate. Letters and emails from sponsors are unacceptable documentation thus requiring an indirect cost waiver. Sponsors should not be contacted about indirect cost policies. Additional information can be found on GW F&A guidance.

If the sponsor does not have clear guidance on indirect cost rates, should I contact the sponsor and ask?

No, please do not contact the sponsor to ask about indirect costs. If the sponsor does not have clear guidance in the funding announcement or on a website, please contact the Office of Sponsored Projects for guidance using the OSP Helpdesk and selecting "Pre-Award".

If my sponsor provides a letter or email that indicates that they do not pay indirect costs or pay only partial indirect costs, do I need a waiver?

Yes, emails from sponsors are insufficient documentation for budgeting an indirect cost rate that is less than GW’s negotiated rate. Therefore, an indirect cost waiver request is required for consideration and this may include additional documentation, Pod and central office contact with the sponsor and school ADR approval.

What is an indirect cost waiver?

An indirect cost waiver is an exceptional circumstance where an institutional decision is made that F&A costs will be applied at a rate lower than the university’s negotiated agreement. Additional information can be found on GW F&A guidance.

Can I request a waiver of indirect costs after my proposal has received notification of funding?

No. Indirect cost waivers should be requested and approved during the proposal phase of funding, well in advance of preparing the proposal budget and prior to submission of proposal for sponsor review.

How can IDC be used to fulfill cost share requirement?

Cost shared IDC is unrecovered indirect cost for the university. An IDC waiver request should be submitted for approval before using indirect cost toward cost share requirements on a proposal.

If I have questions about whether I need an indirect cost waiver, who do I contact?

Questions concerning indirect cost waivers should be directed to your Pod Staff.