Indirect Cost Policy

We fund the direct costs of research, but we also recognize that there are real indirect costs that host institutions incur while managing grants. Therefore, we also support limited requests for indirect costs.‍

Our Policy‍

To include indirect costs in the proposal budget, the host institution must submit a copy of a letter from their federal cognizant agency showing its negotiated indirect cost agreement that is currently in force. However, indirect costs for proposals funded by Spark will be capped at 20% of modified total direct cost. Modified total direct cost excludes equipment (each item over $5,000), capital expenditures, rental of space, tuition remission, participant support costs, scholarships and fellowships, and the portion of a subcontract in excess of $25,000.‍

If the institution does not have a federally negotiated indirect cost agreement, then indirect costs will be capped at 10% of total direct costs.‍

Non-U.S. institutions should submit equivalent justifications of their indirect cost rates from an appropriate governmental or fiduciary entity.

The indirect cost rate of any subcontract award shall not exceed the indirect cost rate of the primary award.

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