Researchers at UW–Madison use cloud computing for many different applications in schools and colleges across campus. Cloud computing may offer better environments for certain purposes, for instance, HIPAA- involved work, research involving restricted data, or collaborative work between multiple institutions or organizations.

UW–Madison maintains contracts with the following cloud service vendors: Amazon Web Services (AWS), Microsoft Azure (Azure), and Google Cloud Platform (GCP). To encourage the use of such services when appropriate, the university is conducting a pilot program to provide a partial waiver of the F&A rate on cloud computing costs through these vendors on sponsored programs.

The pilot, which began on July 1, 2022, is extended for two years, and will include:

• Reducing the 55.5% F&A rate on cloud computing costs to 26%; in effect, waiving the “facilities” portion and charging the “administrative” portion, which is the equivalent of the off-campus rate.
• Applying the waiver to new proposals and awards as of July 1, 2022. This may include new increments of funding received on or after July 1, 2022.
• Careful tracking of cloud computing expenses, requiring all usage to go through UW-operated accounts.
• Researchers and administrators must request a UW–Madison Cloud Account through the Division of Information Technology (DoIT) to receive the reduced F&A rate. If costs are not associated with a UW–Madison Cloud Account through DoIT, i.e., paid for with a purchasing card, those costs will be charged full F&A, not the reduced rate.
• RSP will set up a separate project with a 26% F&A rate for cloud computing expenses through these vendors. Expenses must be charged to the designated account.
• RSP and DoIT providing quarterly reports of cloud usage to the VCR and VCFA, which will include calculated lost F&A.

The pilot is extended for two additional years to allow for additional data collection. At the end of the four-year pilot, data will be reviewed, and a determination will be made as to how to proceed going forward.

More information about the pilot is available at: https://rsp.wisc.edu/proposalprep/cloudComputeInfo.cfm

CC: Deans, Directors, Department Chairs, and College/School Research Administrators