FY2018 - AHRQ to begin allowing Facilities and Administrative (F&A) costs of 8% MTDC for consortia located at foreign institutions

Notice Number: NOT-HS-18-006

Key Dates
Release Date: March 13, 2018

Related Announcements

Issued by
Agency for Healthcare Research and Quality (http://www.ahrq.gov)


The Agency for Healthcare Research and Quality (AHRQ) Funding Opportunity Announcements (FOAs) do not allow foreign institutions to submit grant applications but do allow foreign institutions to participate in projects as members of consortia or as subcontractors only. Beginning October 1, 2017, AHRQ will allow, but not require, applicants to request facilities and administrative (F&A) costs (also known as indirect costs) for consortia located at foreign and international organizations at a fixed rate of 8 percent of modified total direct costs (MTDC), exclusive of tuition and related fees, direct expenditures for equipment, and subawards and/or contracts in excess of $25,000. These funds are provided to support the costs of compliance with federal requirements. Some examples of AHRQ compliance requirements are: the protection of human subjects, animal welfare, invention reporting, other post-award reporting requirements, financial conflict of interest, and research misconduct. Note, these are just a few representative examples of compliance requirement; this list is not all inclusive.
AHRQ will not support the acquisition of or provide for depreciation on any capital expenses (facilities) or the normal general operations of foreign and international organizations. Therefore, these expenses may not be requested as either a direct cost or paid for as an indirect cost; however, equipment is an allowable direct cost. Other items normally treated as F&A costs (e.g., rent) may be requested as direct costs and will be evaluated by AHRQ for allowability, necessity, allocability, and reasonableness.
This policy will apply both to new /renewal (competing) applications awarded in FY2018 and to non-competing continuation awards issued in FY2018 that include consortium(s) located at foreign institutions.
For competing applications that are selected for funding in FY2018, even if funds were not budgeted in the original application, the applicant may request F&A at 8% MTDC for approved consortium(s) at foreign institutions provided this does not cause the award to exceed any per year or overall total cost caps imposed by the FOA under which the application was submitted. The applicant may also propose the rebudgeting of funds to accommodate the costs, provided it does not negatively impact the proposed aims of the project.  
For non-competing continuation awards, grantees may rebudget within the original committed level of funding to accommodate F&A at 8% MTDC for consortium(s) at foreign institutions, provided it does not negatively impact the proposed aims of the project. No additional funds will be awarded for this purpose.
Please note that AHRQ recognizes that the American University of Beirut and the World Health Organization are eligible for full F&A cost reimbursement and therefore are not held to the fixed rate of 8% MTDC.


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