The Department of Energy (DOE) has introduced new solicitation language imposing a 15% cap on indirect costs (IDC), also known as Facilities & Administrative (F&A) costs. Based on DOE policy documents and peer institution consensus, this restriction does not apply to institutions of higher education (IHEs). It is intended for nonprofit, for-profit, and state or local government entities.
What This Means for USC
USC researchers may continue to propose DOE projects using the full federally negotiated F&A rate. However, DOE program offices may still consider IDC levels as a “program policy factor” when making funding decisions.
Subrecipient Considerations
For proposals with subrecipients, please note that the 15% cap applies to nonprofit, for-profit, and state/local government partners, regardless of their negotiated or de minimis rates.
DOE Policy References
This interpretation aligns with recent DOE policy issuances:
Both references reinforce that while IHEs may continue applying their federally negotiated F&A rates, nonprofits, for-profits, and state/local entities are required to adhere to the 15% cap.
Questions?
Contact the Department of Contracts and Grants (DCG) with any questions. DCG will continue to monitor DOE communications closely and provide further updates if additional changes or clarifications are issued.