[GUIDE] Indirect Costs at R1 Research Institutions

[GUIDE] Indirect Costs at R1 Research Institutions


Access to cutting-edge university research drives innovation and accelerates the development of new products and technologies. However, a crucial aspect of industry-academia partnerships is often overlooked – indirect costs.

Working with universities can bring tremendous benefits to a company. Access to cutting-edge research drives innovation and accelerates the development of new products and technologies. Navigating the often-complex world of academic partnerships can be challenging, however, and a crucial aspect of funded research is often overlooked – indirect costs.

What are indirect costs?

Indirect costs, also known as overhead or F&A (facilities and administrative) rates, are the costs associated with sponsored research that are not directly tied to a project. Indirect costs include factors like facilities and administrative expenses, utilities, and general research support. Indirect costs are typically calculated as a percentage of the total direct costs of a project and can range from 30% to 70%, depending on the university.

Unfortunately, these costs can add up quickly and, if not considered, can impact the bottom line of a research project. That’s why it’s critical for R&D teams to understand the indirect cost rate associated with a university partnership and budget accordingly.

Indirect costs can range from 30 to 70%, depending on the university.

A platform for R&D partnering

At Halo, we are dedicated to helping R&D teams navigate the complexities of external partnerships. Our platform connects industry partners with a network of experts across 100+ countries and 1000+ universities and helps streamline the collaboration process, reducing the time and costs associated with traditional R&D partnering.

Your guide to R1 indirect costs

Halo’s newest resource is a searchable database containing all R1 institutions‘ indirect cost rates. Access the database here to make informed decisions about your university partnerships.

In the guide, you can compare the F&A rates of different universities and choose the ones that best suit your R&D budget.

The database includes:

  • University Name
  • On-campus Rate
  • Off-campus Rate
  • State
  • Region

Partner smarter

To drive more impact with the same investment, companies must consider indirect costs when collaborating externally.

By partnering with universities that offer lower F&A costs and using Halo’s platform, you can optimize your budget and ensure that more of your resources go toward research and development.

Schedule a call with Halo’s CEO and Founder to learn more about increasing your R&D ROI.

📌 Don’t forget to check out our list containing all R1 institutions’ indirect cost rates.

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