The University of Alabama at Birmingham's (UAB) Facilities and Administrative (F&A) rate reflects the cost of real expenses that incur during the course of conducting research. These costs are classified as "indirect" because they are not easily identified with a specific project and do not appear as line items on budgets. Items that are included within the F&A cost rate are building and equipment depreciation; the portion of construction and facilities maintenance dedicated to research; recurring expenses such as utilities, telecommunications, hazardous waste disposal, security and fire protection, and liability insurance; institutional administration, which includes but is not limited to, accounting, legal, counsel, compliance, personnel, and sponsored programs administration; and research administration at the university, school, department, and division levels.
All industry-sponsored clinical trial agreements, that meet the reduced F&A Rate criteria
here, processed by the UAB Office of Sponsored Programs (OSP) should include the F&A rate of 30% to be applied for budgetary purposes, and ultimately on all cash received. If they do not meet the criteria, they and Investigator Initiated Trials should include 36% MTDC F&A rate in addition to the direct costs.
