ALLOWABILITY OF FACILITIES AND ADMINISTRATIVE (F&A) COSTS FOR FOREIGN AND 
INTERNATIONAL ORGANIZATIONS

Release Date:  March 29, 2001

NOTICE:  NOT-OD-01-028

National Institutes of Health

In the past, Department of Health and Human Services (DHHS) policy 
prohibited the provision of facilities & administrative (F&A) costs on 
foreign and international awards. As a result, the National Institutes 
of Health (NIH) and the extramural community have had concerns that by 
not providing some allowance for F&A costs to these organizations, 
valuable research opportunities may be lost.  

Effective October 2001 (FY 2002), NIH will provide limited F&A costs to 
foreign and international organizations. The provision of F&A costs to 
foreign and international organizations is to support the costs of 
compliance with DHHS and NIH requirements including but not limited to, 
the protection of human subjects, the welfare of animals, financial 
conflict of interest, and invention reporting.

This implementation will affect new and competing continuation awards.  
Established commitment levels on non-competing continuation awards will 
not be adjusted, however, funds may be rebudgeted to cover these costs.  
The F&A costs should be requested in competing applications and may not 
exceed eight percent of total direct costs less equipment.  Also, 
domestic organizations that submit applications with a foreign or 
international consortium may request eight percent of total direct 
costs less equipment, for the consortium.  NIH will not support the 
acquisition of, or provide for depreciation on any capital expenses 
(facilities), or normal general operations related to foreign and 
international organizations.

Affected applicants that have already submitted applications request 
these costs at the time any potential award is negotiated. 

INQUIRIES

Additional questions regarding the implementation of F&A costs to 
foreign and international organizations may be directed to the NIH 
Division of Grants Policy at (301) 435-0949 or the Grants Management 
Specialist identified on the NIH Notice of Grant Award.

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