Facilities & Administrative Costs

Facilities and Administrative (F&A) costs are an unavoidable element of conducting research on behalf of federal agencies, including the National Institutes of Health (NIH). Research institutions incur these expenses as a result of conducting research funded by the agency's grants.

Also known as "indirect costs," federal agencies provide payments to institutions above the directly attributable costs of a specific research project in order to offset a portion of the costs associated with the infrastructure necessary to do the research work. In other words, F&A reimbursements help support the infrastructure costs that institutions incur as a result of conducting research (e.g., precision climate control, lab construction and maintenance, lights, water, internet access, etc.) Because these expenses are inseparable from the research itself, a cut to F&A support from NIH and other agencies would effectively be a cut to research.

The following resources are intended to further understanding of the complex issue of Facilities and Administrative (F&A) reimbursements, including the potential effects of current policy proposals, for faculty members and others in the academic community.

AAMC Materials:

• F&A Presentation

• F&A Infographic

• Costs of Research FAQ 

• Research View: Demystifying Facilities and Administration Costs (Ross McKinney, MD, AAMC Chief Scientific Officer)

• Comparing Foundations to Federal Government Research Support 

Letters & Commentary:

• Community Letter Regarding Facilities and Administrative Expenses

• AAMC Letter to HHS and OMB Regarding Facilities and Administrative Expenses

• Joint Association Comments on F&A to House Science Committee

Resources from AAMC-Member Institutions:

• UCSF Video: F&A: The Bedrock of Biomedical Research

• Harvard University Video: The NIH and the need for funding facilities and administration costs

• University of Idaho Office of Sponsored Programs F&A Video