Effective October 1, 2025, the full uncapped Facilities & Administrative (F&A) rate will be applied to all new proposals, awards, and agreements with for-profit entities.

The uncapped rate will be applied to:

1. New proposals submitted on or after October 1, 2025.
• For existing ongoing projects, the F&A rate will not be changed, and these projects will keep the existing rate throughout the life of the award/agreement.
2. Proposals, awards, and agreements fully sponsored/funded by a for-profit entity.
• For proposals, awards, and agreements that originate with a federal agency and flow to UW-Madison through a for-profit sponsor, the current federally- negotiated F&A rate will be applied. For commercially-sponsored clinical trials, the current rate will apply.

The uncapped F&A rate in the current rate agreement is 64%. This rate will remain in effect until the next agreement is approved.

CC: College/School Research Administrators

Attachment: Charging For-Profit Sponsors the Full, Uncapped Facilities and Administrative (F&A) Rate at UW–Madison