Facilities and Administrative (F&A) costs are real costs incurred by the campus, associated with all externally-sponsored projects, regardless of funding source. Any project budgeted at less than the federally approved rate is being subsidized by the other funded projects. Nevertheless, there may be valid reasons for reducing or waiving these F&A costs on certain projects. Such waivers would reflect the tradeoff between the need to cover the real (F&A) costs against the need for the campus to meet other strategic goals.
