Indirect Costs (Overhead)

Indirect cost rates as of November 4, 2019 are:

Federal/Private 54.5% (7/1/2020-6/30/2022) and 55% for the period of (7/1/2022-6/30/2023). See full rate agreement here.

State 39%

Off-Campus 26%

Waivers of indirect costs are rare and reserved for specific types of grants, programs, or sponsors. These require the recommendation of the Laboratory Director and approval by the UMCES President. In the event of such waivers, the difference between the full overhead rate and the allowed overhead rate may be used as match or cost-share.

When overhead is limited you should discuss such grants and contracts with the Director early in the proposal process.

Items exempt from overhead are tuition, single units of equipment exceeding $5,000, and UMCES fleet vessels (not small boats). For subcontracts, indirect costs are computed at the full proposal overhead rate but are assessed on only the first $25,000 of each subcontract. For example if you are submitting a three year NSF proposal with a $50,000 annual subcontract to another university, UMCES only charges full overhead on $25,000 in the first year (= $13,250). No overhead is charged in years 2 and 3. If you use the budget worksheet, this is calculated for you automatically.

If at least 50% of the activities to be conducted in the performance of a grant are completed in facilities not owned by UMCES, the entire grant is considered to be off site and is eligible for a reduced off-campus indirect cost rate. This requires the approval of the Laboratory Director.