Indirect Cost (F&A) Policy — University and Research Institution Partners

1. Rate. Pilgrim Africa reimburses indirect costs, also described as facilities and administrative (F&A) costs, at a rate not exceeding 6 percent of total direct costs, on all awards, subawards, and service agreements to universities and research institutions.
2. Base. The rate is applied to total direct costs and not to a modified total direct cost base. Personnel, travel, subsistence, project-specific equipment, and consumables are reimbursed as direct costs and are not subject to the cap.
3. Application. The rate applies uniformly to academic partners and is not subject to negotiation on the basis of an institution’s negotiated rate.
4. Basis. Pilgrim Africa is predominantly philanthropically funded. Limiting indirect recovery directs a greater proportion of each award to field operations, study sites, and Ugandan personnel, and permits a greater number of research partnerships.
5. Exceptions. Clause 1 does not apply where:
   • 5.1   the award is funded in whole or in part by United States federal funds, in which case Pilgrim Africa acts as a pass-through entity and accepts the partner’s federally negotiated indirect cost rate, or the de minimis rate, as required by 2 CFR 200.414;
   • 5.2   a donor’s terms of award specify a different treatment of indirect costs, in which case those terms govern; or
   • 5.3   applicable law or an intergovernmental agreement requires otherwise.
6. Notification. A partner asserting an exception under clause 5 must notify Pilgrim Africa before submitting its budget.
7. Budget presentation. Direct and indirect components must be stated separately. On a firm fixed-price award the indirect component is incorporated within the total contract value, and its composition is stated in the award document.
8. Enquiries. betty.atai@pilgrimafrica.org.