PDF: Applicability of MIT F&A Rate Agreements Under "Fixed Rate" Requirements - February 2019
MIT’s latest rate agreement is unique this year as it contains negotiated fixed rates for two years instead of one, as we normally see. This agreement is effective January 15, 2019, and fixes our FY19 rates at 55% On campus (which was the provisional rate) and 5.8% Off campus (an increase over the provisional rate). The new agreement and also provides a fixed FY20 rates of 50.6% On/6.2% Off. Because of this, some awards will be subject to two different fiscal year F&A rates.
OSP is currently processing awards containing effective dates both before and after 1/15/2019. To determine which rate applies, please see the following guidance:
Any award with an effective start date of 7/1/2018 through 1/14/2019 with be charged 55%/5.8% for the life of the award (competing segment), per the single FY19 rate in place on start date.
Any award with an effective start date of 1/15/2019 through 6/30/2019 will be charged 55%/5.8% from the start date through 6/30/2019 and 50.6%/6.2% “fixed for the remainder of the life” of the award.
Any award with a start date on or after 7/1/2019 will be charged 50.6%/6.2% for the life of the award.
NOTE: Fixed for the life provisions are only applied to federal and federal prime awards. Foundation, industrial and other non-federal awards are subject to the rate in affect at the time that expenses post.