Allocation Rates

Current Allocation Rates by Component

The MIT fiscal year runs from July 1 to June 30.

The allocation rates for Fiscal 2016 have been provisionally approved. See the attached letter from ONR, and the chart of rates below.

FY2016 Rates (provisionally approved)
Interdepartmental Laboratory Name S&W M&S Utilities
CSAIL Computer Science & Artificial Intelligence Laboratory 7.80% 1.10%  N/A
CTL Center for Transportation & Logistics 8.20% 1.00%  N/A
SSRC MIT Sociotechnical Systems Research Center (MIT SSRC) 5.90% 0.70%  N/A
HAYSTACK Haystack Observatory 19.00% 6.80% 14.90%
LIDS Laboratory for Information and Decision Systems 8.50% 1.60% N/A
LNS Laboratory for Nuclear Science 7.60% 0.60%  N/A
MITei MIT Energy Initiative 6.00% 0.00%  N/A
MKI MIT Kavli Institute for Astrophysics and Space Research 7.30% 1.00%  N/A
MPC Materials Processing Center 4.30% 0.00%  N/A
PSFC Plasma Science and Fusion Center 6.42% 0.52%  N/A
RLE Research Laboratory of Electronics 7.60% 0.70%  N/A

Click here for historical allocation rates 2016-2012.

Overview of Allocation Rates

The 11 interdepartmental laboratories with allocation rates use allocation accounts to accumulate the costs of the laboratory central administrative group. These allocation costs are largely the administrative and support salaries and non-salary expenses incurred for the overall administration and management of the lab. Unallowable costs cannot be charged to the allocation accounts. The allocation rates are used for uniformly assigning allocation costs to all cost collectors (WBS Elements, Internal Orders, Cost Centers, etc.) with certain exceptions. In general, the cost collectors excluded from receiving the allocation charge(s) are laboratory director general accounts, service facilities, fabricated equipment, payroll/suspense & clearing accounts, and telephone equipment & network accounts.

Each lab charges its own set of allocation rates. In addition, separate rates are calculated for distributing salaries in the allocation account (the S&W rate) and non-salary costs (the M&S rate) for each lab. Haystack Observatory, which is an off-campus lab, also uses a Utilities rate for the distribution of its utilities costs.

Referencing the example below, within each receiving cost object, SAP applies each allocation rate to all direct expenditures except modifiers, such as equipment(1), tuition, subcontracts (greater than $25K)(2), employee benefits(3), vacation accrual(4), and indirect costs(5). This base can be referred to as an adjusted modified total direct cost (Adjusted MTDC) base.

Allocation Rates Sample Chart