Costs related to the general administration of departments, institutes, or the university, such as office supplies, depreciation of facilities and equipment, and utility costs of maintaining buildings and laboratory spaces. These expenses are part of the total cost of doing business at a research university, although the relationship of these costs to a specific sponsored project may be difficult to quantify.  Institutions that accept federal funds negotiate indirect cost rates for a five-year period through an assigned federal agency. Indirect costs are applied to your project as a percentage of direct costs, and rates vary depending on the type and performance site of the research.

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Virginia Tech Indirect Cost Rates Table FY 16-18

Virginia Tech's fiscal year runs from July 1st through June 30th.
FY16-FY18 Rate
Research On-Campus* 61%
Research On-Campus** 65%
Research Adjacent* 27%
Research Adjacent** 31%
Research Remote* 26%
Research Remote** 30%
Instruction On-Campus 49.70%
Instruction Off-Campus 26%
Other On-Campus 30.50%
Other Off-Campus 22.50%

* Applies to all DoD contracts awarded or issued before 11/30/1993, all non-DoD instruments and all DoD grants (capped rate).

** Applies to all DoD contracts awarded or issued after 11/30/1993 in accordance with and under the authority of DFARS 231.303-1 (uncapped rate).