University of Iowa

Change in F&A Rate for Industry-sponsored Clinical Trials

GAO recently announced a modification to the long-existing F&A (Facilities & Administrative) rate for industry-sponsored clinical trials to be implemented on July 1, 2016. The new rate will be 26% Total Direct Costs (TDC). All routing forms for industry-funded clinical trials submitted to DSP on or after July 1, 2016, should use the 26% TDC F&A rate.

Budget and research coordinators and PIs should notify sponsors and CROs of UI’s new F&A rate and the associated effective date.  DSP recommends that, when sharing budget information with corporate sponsors, you prepare a fully burdened budget, meaning the F&A rate would be built into the other budget categories rather than appearing as a separate line item.

The full GAO policy can be viewed here.