The information that follows should serve as a guide for understanding and calculating Indirect Cost (IDC) Recovery (also commonly referred to as F&A or Facilities & Administrative costs) as a part of the proposed budget. Please note: these guidelines apply to all Western SARE grant opportunities (Research & Education; Sabbatical Research & Education; Professional + Producer; Graduate Student Grants in Sustainable Agriculture; Professional Development Program Grants; Research to Grass Roots; and, State Implementation) with the exception of Farmer and Rancher Grants (all funds go directly to the producer; therefore, IDC recovery is not allowed).
USDA NIFA may apply legislative limits on IDC recovery for its various programs. Under the SARE program and for projects funded in 2022 or later, NIFA states IDCs may not exceed 10% of the Total Direct Costs (TDC) requested. Note: the 10% TDC limit is a cap on the portion of an applicant’s budget that may be requested for IDCs; it is not an IDC rate.
For Western SARE grant recipients between 2019 – 2021, please refer to the IDC guide that applies to your award.
When applying for a Western SARE grant, please be aware there are three IDC recovery scenarios. Only one scenario will apply to the applicant and is dependent upon whether the applicant’s organization has a Federally Negotiated Indirect Cost Rate Agreement (NICRA).
Entity Applicants with a NICRA:
For entities that have a NICRA, IDCs MUST be calculated at a rate of 10% of Total Direct Costs (TDC). This is the maximum indirect cost recovery (IDC cap) allowed under the SARE program per USDA/NIFA. The 10% TDC IDC cap should be applied consistently to both the primary applicant and any proposed lower-tier subrecipients; therefore, include the total costs of any/all proposed lower-tier subawards in the IDC recovery base.
Non-Federal Entity Applicants without a NICRA:
Per Federal Uniform Guidance, non-Federal entities that have never had a NICRA, or previously had a NICRA but it is no longer in effect, may claim up to 10% of modified total direct costs (MTDC) as de minimis to cover overhead. MTDC includes all direct costs except for the following: the amount of each lower-tier subaward that exceeds $25,000 and participant/trainee support costs. Alternatively, an entity without a NICRA may decline IDC recovery entirely (i.e., requesting the 10% de minimis is not required).
Example: The CFP states applicants may request up to $75,000 total costs. The PI’s organization does not have a NICRA and will request the 10% de minimis rate as IDC recovery.
Proposed Budget
Salaries & Fringe 30,000
Supplies & Materials 4,645
Travel 2,900
Contracted Services 2,000
LT Subaward to X Organization 29,000
Total Direct Costs Requested $68,545
MTDC $64,545 ($68,545 – $4,000 for the portion of the subaward in excess of $25K)
IDCs Requested $6,455 ($64,545 x .10)
Total Costs Requested $68,545 TDC
$6,455 IDC
$75,000 Total Costs
Acronyms
CFP Call for Proposals
IDCs Indirect Costs (also known as F&A – Facilities & Administrative Costs)
MTDC Modified Total Direct Costs
NICRA (Federally) Negotiated Indirect Cost Rate Agreement
TDC Total Direct Costs