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Facilities and Administrative (F&A) Costs and Fringe Benefit Rates

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Indirect costs are now more commonly called Facilities and Administrative costs (F&A). These costs support research that cannot be specifically quantified for your research or project alone. Examples are the maintenance and operations of the buildings and space within which research or projects are conducted, the interest and depreciation on the costs of construction, and certain administrative costs. The institution calculates indirect costs and negotiates the rate with a federal agency. CHOP negotiates our F&A rate with the Department of Health and Human Services annually.  Unless a sponsor has a different published F&A rate, the current federally negotiated rate should be used on all grant submissions. Please see our Overhead and Fringe Benefit Rates below for the current rates.

CHOP policy requires the full recovery of indirect (F&A) costs. When a sponsor has a published policy that limits the F&A that may be charged, CHOP accepts the published rate. In rare circumstances, CHOP will consider a request to reduce or waive F&A. Such requests should be forwarded to the Director, Post-Award Research Administration and Research Portfolio Management for review and consideration.

CHOP recognizes that sponsors have a finite availability of fiscal funding and thus wanting to reduce or waive CHOP's F&A rate may appear expedient. However, this overlooks that F&A cost are real expenses to CHOP.

Information for collaborating institutions on Hospital fringe benefit and Facilities and Administrative (F&A) rates is available below.

Legal Entity Name: Children's Hospital of Philadelphia

Duns Number: 073757627-0000

Congressional District: PA-003

CHOP is registered in the federal government's Central Contractor Registration (CCR)

Applicable To:

7/1/18 - 6/30/19

7/1/19 - 6/30/21

Base

 

Fixed

Provisional

 

*Organized Research
on-site (1)

76.0%

76.0%

MTDC

*Organized Research
off-site (1)

34%

34%

MTDC

**Other Sponsored Activity on-site (1)

49.2%

49.2%

MTDC

**Other Sponsored Activity off-site (1)

34%

34%

MTDC

Corporate Clinical Trial Agreements

30%

30%

TDC less IRB fees

Children's Oncology Group Contracts

7.5%

7.5%

TDC

Sponsored Research Corporate

76%

76%

MTDC

1. Modified total direct costs, consisting of all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

Definitions:

*Organized research means all research and development activities of an institution that are separately budgeted and accounted for.

**Other sponsored activities means programs and projects financed by Federal and non-Federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects and community service programs.

 

Fixed

Provisional

Base

CHOP Payroll

26.4%

29.3%

Salary & Wages

Pediatric Faculty

21.6%

21.6%

Salary & Wages

Non-Pediatric Faculty

17.8%

17.8%

Salary & Wages

Practice Plan Support Staff (F2)

30.4%

30.4%

Salary & Wages

Treatment of Paid Absences:  Vacation, holiday, sick leave and other paid absences are included in salaries and wages and are claimed on grants, contracts and other agreements as part of the normal cost for salaries and wages.  Separate claims are not made for the cost of these paid absences.  Fringe Benefits include:  FICA, Disability Insurance, Life Insurance, Tuition Remission, Pension Costs, Workers’ Compensation, Unemployment Insurance and Health Insurance.