- When should the new IDC rates be used?
The increase in IDC rates is effective July 1, 2024. The new rates are required for all proposals for new funding being submitted to the sponsor on or after June 1, 2024. Please see the IDC Blink Page. - I am routing a proposal now for a budget that will span the 7/1/2024 effective date; it will have budget dates from 6/1/2024 through 5/31/2025. How do I calculate the IDC rate? Total costs will be $200,000 for the year.
By default, the IDC rates should be displayed separately.
1 month at 58%: 10,549 DC + 6,118 IDC = 16,667
11 months at 59%: 115,304 DC + 68,029 IDC = 183,333
In instances where only a single IDC rate can be listed, the IDC can be calculated via a weighted average. See below example:
Annual IDC rate calculation: (58*1 + 59*11)/12 = 58.92
200,000/1.5892 = 125,849 DC and 74,151 IDC
- I am submitting a supplemental proposal for an existing award. What rate should I use to prepare the budget for this proposal?
Unless sponsor policies state otherwise, supplemental funding is considered new funding. The new IDC rates are required for all proposals for new funding being submitted to the sponsor on or after June 1, 2024. - I am submitting a proposal for a competitive renewal. What rate should I use to prepare the budget for this proposal?
Unless sponsor policies state otherwise, competitive renewals are considered new funding. The new IDC rates are required for all proposals for new funding being submitted to the sponsor on or after June 1, 2024. - I am submitting a Kuali PD for a continuation year of a budget for a NIH non-SNAP RPPR; in our original proposal, we had proposed a multi-year budget at 58%. Do I need to use the 59% in my continuation year Kuali PD?
Continuations are not considered new funding. All active grants and contracts will grandfather in the IDC rates established by the terms of such agreements. - How will the increase in IDC rates be handled for awards resulting from proposals utilizing the prior IDC rates that have been approved by the Sponsored Projects Office in Kuali and submitted to the sponsor?
The prior IDC rates for proposals reviewed and approved in Kuali by the Sponsored Projects Office will be honored for proposals submitted prior to June 1, 2024. Note: The Sponsored Projects Office may not have sufficient time to review proposals ensuring that the correct IDC rate is being applied prior to the proposal being submitted to the sponsor. Accordingly, last minute proposals, such as “as-is” submissions, are not considered proposals which were reviewed and approved by the Sponsored Projects Office.
In some cases, a sponsor may allow the new IDC rate to be used and may provide additional funding to support the added cost. In such an event, the budget should be revised to include the higher rate. - My PI submitted a proposal or budget directly to the sponsor using the incorrect or prior IDC rate and now we have received the award. How do we handle it?
The new IDC rate is required for all proposals for new funding being submitted to the sponsor on or after June 1, 2024.
Accordingly, the new IDC rate should apply to awards that result from proposals for new funding submitted after June 1, 2024.
In a situation where the old rate was used in a proposal submitted on or after June 1, 2024 for new funding (e.g. a PI submitted a proposal directly to the sponsor without first going through the Sponsored Projects Office, or late submission proposals that are “as is” or “no guaranteed submission”), the new IDC rates would still apply to these awards and a revised budget with the new IDC rates would be required.
For NIH and other sponsors that allow an opportunity at the pre-award stage for budget revisions (such as Just-In-Time, NSF budget revisions, etc.), the PI and fund manager should work with SPO to ensure that a revised budget is submitted at the pre-award stage.
Otherwise if an award is received with the old rate, the PI should request a budget change from the sponsor to reflect the correct IDC rate. Alternatively SPO may request an internal rebudget from the department applying the new rate. - I have been requested to submit a Kuali PD to increase the obligation on a fixed price award for which we have exceeded the original estimated budget. Would I need to reflect the new rate on my internal budget? The award was set up using the old rate, as this is not “supplemental” funding.
Active grants and contracts would continue at the IDC rates established by the terms of such agreements. - I have an existing fixed price, milestone based award for which the sponsor is updating some items on the pricing schedule. We will need a new Kuali PD to accommodate the additional funding that will be generated from this modification to the pricing schedule.
See above - active grants and contracts would continue at the IDC rates established by the terms of such agreements.
- I am adding a new project or scope of work under an existing contract. Would this require use of the new IDC rates?
Adding a new project or scope of work to an existing contract is considered supplemental work and the funding to support such work is considered new funding. For example, a task order, rider, or amendment being added to a Master Agreement for a new project will utilize the new IDC rates. The new rates are required for all proposals for new funding being submitted to the sponsor on or after June 1, 2024. - Do we continue to exclude cloud computing costs via UCSD Contracts/ ITS/SDSC the Modified Total Direct Cost (MTDC)?
Although not listed as an exclusion on our rate agreement, cloud computing costs via UCSD Contracts/ITS/SDSC remain excluded under MTDC per campus guidance. - I see that Composite Benefit Rates are now on the rate agreement. How do I budget for CBRs after 6/30/25?
Please escalate CBRs as you normally would. UCSD recommends a 2% rate escalation for each additional year. Please see campus guidance.