Indirect Cost Waiver

University-wide indirect cost rates are determined on the basis of a cost study prepared by the Financial Management Division and reviewed by Federal auditors/negotiators. Consistent with the cost principles for educational institutions published by the Federal Office of Management and Budget in OMB Circular A-21, these indirect cost rates are expressed as a percentage of modified total direct costs (MTDC).

In the event that a potential sponsor has a policy limiting indirect cost rates below those established by UW directives, OSP approval is required before any proposal can be submitted. As a prerequisite to such approval OSP requires that the IDC limitations be published in the Request for Application (RFA) or on the sponsor's website (An email or letter from the sponsor is not sufficient). In the absence of a published document indicating IDC restrictions, an IDC Waiver request form can be submitted.