F&A Costs: History



Facilities and Administrative (F&A) Costs: History

1. 1940s: Universities first began to conduct federally funded R&D during World War II

2. 1947: Department of the Navy issues a 13 page Blue Book setting out basic principles for recovery of overhead costs by universities. Rigid formulas and procedures were consciously avoided.

3. 1950s & 1960s: Medical research funding grows primarily in form of cost reimbursable grants with fixed rates for indirect costs (1955 8%TDC, 1956-63 15%TDC, 1963-66 20%MTDC).

4. 1958: Bureau of the Budget issues Circular A-21, requiring more detail as universities begin pressing for better recovery of costs.

5. 1966: The IDC cap is removed.

6. 1970s thru 1990s: Rates continued to climb to an average of 50%, generating ongoing concern among PIs, funding agencies and Congress.

7. 1979: A-21 completely rewritten to address concerns over costing practices and documentation, with additional revisions in 1982, 1986, 1991 (administrative cap), 1993, 1996, & 1998.

8. 2000: Standard format for long form proposals required.

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