University of California

Costing Policy & Analysis

Research Administration Office

Operating Guidance

No. 96-02
February 14, 1996


Subject: Application of Campus Indirect Costs to Laboratory Funded Awards


The purpose of this Memo is to clarify when campus indirect cost rates apply to Department of Energy (DOE) Laboratory funded awards. With the implementation of the 1992 contracts for the University' s management of the three DOE Laboratories, the CALCOR/INCOR and Nuclear Science Fund programs which funded campus/Laboratory collaborative research projects were phased out. Instead, the management fee provided to the University under the new contracts is used to fund the Campus-Laboratory Collaborations Program (CLC), administered by the Office of the President (OP) Office of Research, and to provide the Laboratories with UC Directed Research and Development funds (UCDRD). The use of UCDRD funds is directed by the three DOE Laboratory Directors who may use it to award research funding to campuses as described below. With the establishment of these new programs and the termination of previous programs, the application of campus indirect cost rates in this area needs clarification.


Campus indirect costs are applicable to all DOE Laboratory funded projects when the funding mechanism for such projects is an Intra-University Transfer Agreement (IUT) in accordance with the Laboratories' Standard Practice, SPs 44.1. (See Contract and Grant Operating Guidance Memo 94-15, dated July 27, 1994.) The Laboratories' Department of Energy funding as well as funds from other federal and for-profit sponsors may be awarded or sub-contracted to campuses using an IUT agreement. Applicable campus overhead rates apply to all funds provided via IUTs.

Campus indirect cost rates are not applied to CLC and UCDRD awards because their funding source is University funds. As they are not transferring money from Laboratories to campuses, these programs do not use IUT agreements. For a CLC award, documentation is a letter from the OP Special Assistant for Laboratory Affairs to the campus Principal Investigator (PI), with copies to the campus Contracts and Grants Office. The award funds are transferred from the OP Office of Research to the PI's campus. For the UCDRD awards, documentation is a letter from the Laboratory to the campus Contract and Grant Office with a copies to the PI and various other offices including OP Corporate Accounting which initiates the fund transfer to the campus.

Indirect cost rate exceptions for Laboratory programs which were formerly funded by CALCOR/INCOR or Nuclear Science Fund money will no longer apply. If these programs award funds to campuses using IUTs, campus overhead rates apply.

Refer: Samuela A. Evans (510) 987-9849

Subject Index: 02, 08, 10
Organization Index: U-115

David F. Mears
Director, Research Administration

Interim Provost King
Special Assistant Poppy
Director Nelson
Manager Lester
Laboratory Special Program Directors
Campus Accounting Officers