“For-Profit” F&A Rate (Indirect Costs)

UGA/UGARF expects budgets developed for projects funded by companies to bear the full, uncapped F&A rate, depending upon the type of project proposed. Applicable F&A rates can be found on SPA Pre-Award F&A Rate Table, under the second (Non-Federal) heading.

Sometimes a potential corporate sponsor will send UGA/UGARF a letter espousing that their official company policy is to pay a lesser F&A rate. Such letters will not be accepted for three reasons:

1. UGA/UGARF cannot perform work for a company if we do not recover our full costs. UGA is a state-supported institution; to perform work that doesn’t fully cover the real costs of doing that work means that the citizens and taxpayers of the State of Georgia is subsidizing the company.
2. Accepting less than full F&A recovery could put UGA’s/UGARF’s tax exempt status through the IRS at risk.
3. The Federal government expects to pay no more in F&A costs than we charge anyone else. If we allow a company to pay less in F&A than them, we put in jeopardy our ability to collect full F&A from our Federal sponsors.