Research Indirect Cost
Responsible Administrative Unit:

Policy
Office of Research and Technology Transfer

Policy Contact:
Director of Research Development: Lisa Kinzel

lkinzel@mines.edu
Issued: 10/14/2015

Revised: 10/14/2015

1.0
BACKGROUND AND PURPOSE
This policy uses the term “IDC”, or indirect cost, to refer to “F&A Cost”, or the facilities and
administration costs that are negotiated by our cognizant agency, Office of Naval Research
(ONR). The IDC portion of the research budget is the means to recover the indirect costs that
are incurred by the university in order to operate the research mission: research administration
(accounting, management, etc.), research facilities, and other infrastructure and operational costs.
In 2014 the ONR IDC rate increased from 51.49% to 59.66%. Mines cannot charge the full rate
on federal projects and, therefore, we must use the government cap which increased from 45% to
50%. By Colorado Law we must charge industry the full rate, 59.66%. This policy defines the
rate to be charged to each class of sponsor and assigns responsibility for making decisions about
exceptions.
2.0
POLICY
The ONR IDC rates in effect when the proposal was submitted must be used on research projects
at CSM as follows (using the FY15 IDC rates):
• The government-capped rate of 50% must be used on all federal-government projects except
as outlined below.
• The VPRTT may approve the use of the 50% government rate for other domestic
governments (local, state) if the research is likely to provide significant benefits to the
university and/or public welfare and safety.
• The full ONR IDC rate of 59.66% must be used on all non-government projects except as
outlined below.
• The VPRTT may approve use of a reduced IDC rate if the reduced rate applies to all
proposals submitted to that agency or program, the benefits are in the best interest of Mines,
the rationale is documented in the proposal file and the sponsor is a government agency,
philanthropic foundation or other university
• Requests for reduced IDC rates for any other non-government or foreign sponsor must be
approved by the VPRTT, VPFO and Provost
• Mines does not voluntarily reduce the IDC rate on proposals except that the VPRTT may
approve a voluntary reduction on proposals to government agencies and non-profit
organizations for curriculum development and instructional equipment or materials that
primarily will benefit Mines students, or for infrastructure support which otherwise would be
charged to the instructional budget.