University of California

Office of the President


Senior Vice President—

Business and Finance





Research Administration Office

No. 04-10

November 15, 2004



Subject: F&A Rate on Intergovernmental Personnel Act Agreements

In January, 2003, the Defense Procurement and Acquisition Office published the attached memo on "Allocability and Allowability of Costs Associated with the Intergovernmental Personal Act (IPA) Mobility Program" which provided guidance that facilities and administrative costs (F&A) can be charged to IPA agreements. (See Operating Guidance Memo 03-02.
However, the federal agencies wanted an approved, negotiated rate to applied to IPAs.

The University of California now has an approved F&A rate of 9% of modified total direct costs, negotiated with the University's cognizant federal agency, which can now be applied IPAs for all campuses. While this rate is retroactive to July 1, 2004, existing IPAs do not need to be modified. All future IPA agreements should utilize this rate. The indirect cost rate exception number for this reduced rate is 05R-049.

Until the University receives a hard copy confirmation of this negotiated rate, campuses can direct a federal agency which questions this rate to call Mr. Wallace Chan, Branch Chief, Western Field Office, Division of Cost Allocation, U.S. Department of Health and Human Services at (415) 437-7829 to confirm the rate.

Refer: Samuela A. Evans   Subject: 08, 22   Organization: F-001
(510) 987-9849    
    David F. Mears
    Director, Research Administration


Cc: Jorgy Ohy, OP CP&A
Campus Extramural Funds Office Managers