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Indirect Cost

Indirect Costs, also known as Facilities and Administration Costs (F&A Costs), are defined as costs that have been incurred for common or joint objectives of TROY and the sponsored program, and which, therefore, cannot be identified specifically in reference to a particular project. Examples of Indirect Costs would include such things as building operations and maintenance, laboratory space, library service, utilities, and administrative services.

These requirements must be considered when calculating indirect cost for external partnerships:

  • TROY Sponsored Program proposals are expected to charge the maximum allowable indirect cost rate.
  • Federally supported partnerships may support TROY’s Federal Negotiated Indirect Cost Rate Agreement (NICRA).  TROY’s approved rate agreements are linked in the side bar to the right.
  • The allowable indirect cost rate is determined by the sponsor agency and can be found in the application instructions.
  • If the partner allows indirect cost but does not have a designated rate, writers must charge a minimum of 14% of all direct costs.
  • Waivers of allowable indirect cost can only be approved by the Senior Vice Chancellor.

Indirect Cost for Fixed Cost Contracts

A fixed cost contract is a partnership in which TROY guarantees to deliver or to perform contract work within a specified period at a fixed price agreed upon in advance and payable no matter what the actual costs are.

As per policy, Troy University requires that proposals submitted to external sponsors request the maximum allowable indirect cost rate, whether the indirect cost rate is a fixed rate determined by the agency or Troy University's negotiated rate. However, if the agency does not designate a fixed indirect cost rate or does not allow the negotiated rate, the minimum indirect cost for all external proposals is to be 14% of all direct costs. Exception to the 14% rate can only be approved by the Chancellor or Senior Vice Chancellor.

The calculator below provides the amount of indirect cost to charge for fixed cost partnerships:

Indirect Cost Calculation for Fixed Cost Partnerships




TROY Federal Negotiated Indirect Cost Rate Agreements (TROY NICRA)


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