Office of Sponsored Programs

For All Programs (Research, Instruction, Training)

Modified total direct costs consist of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs exclude capital expenditures (buildings, individual items of equipment; alterations and renovations); that portion of each subaward in excess of $25,000; and flow-through funds.

The MTDC rate is subject to any statutory or administrative limitations and apply to a given grant, contract or other agreement only to the extent that funds are available.  

Official Rate Agreement

42% of Modified Total Direct Costs On-Campus

11.5% of Modified Total Direct Costs Off-Campus 

When determining whether the on‐ or off‐campus rate is to be used, especially when multiple institutions are involved, one should only consider Tennessee Tech’s portion of the project and not the project as a whole. If more than 50% of Tennessee Tech’s part of the project utilizes Tennessee Tech’s facilities and resources, the full indirect cost rate of 42% should be charged for the project. If less than 50% of Tennessee Tech’s part of the project utilizes Tennessee Tech’s facilities and resources, the off-campus rate should be utilized  (see our full procedure on indirect costs for further information).

The agency must provide documentation requiring a rate lower than the federally negotiated rate above, or the rate of 15% of Total Direct Costs should be utilized. Note: in projects utilizing federal flow through funds, the federally negotiated rate of 42% must be used.

The University has three on-campus institutional agreements for research, and others will be negotiated as warranted.

• Tripartite Cooperative Agreement (PDF file) (Please note that clicking on this link will require you to log into a SharePoint site using your Tech username and password.)
  
  The Tripartite Cooperative Agreement between the U.S. Geological Survey (USGS), the Tennessee Wildlife Resources Agency (TWRA), and Tennessee Technological University provides funds for the operation of the Cooperative Fishery Research Unit. Under this tripartite agreement--which is effective from March 16, 2016, until termination--Tennessee Tech is obligated to share in the cost of research conducted through the Unit. No indirect costs are charged against the annual base support funds provided by USGS and TWRA for the Unit. Research projects funded by USGS, TWRA, and other state agencies and administered through the Unit must have an indirect cost rate of 15% of total direct costs, including equipment.
  Projects funded by a federal agency other than USGS and processed through the Unit will be charged full indirect costs of 42% of modified total direct costs.
  
  
• CESU Master Agreement (PDF file) (Please note that clicking on this link will require you to log into a SharePoint site using your Tech username and password.)
  
  The purpose of the Cooperative Ecosystem Studies Unit (CESU) Master Agreement between the National Park Service (NPS) and Tennessee Technological University is to establish cooperative study units to conduct multi-disciplinary research and develop integrated information products on the resources of the National Park Service and develop adequate, coordinated, cooperative research and training activities concerning the resources of the NPS. The agreement will be effective March 1, 2024 through February 28, 2029.  Worked covered by the agreement will have an indirect cost rate of 17.5% of total direct costs. Non-CESU sub-recipients may be asked to follow the rate, but may not be required.  
  
  
• Southern Appalachian Mountains CESU Master Agreement (PDF file) (Please note that clicking on this link will require you to log into a SharePoint site using your Tech username and password.)
  
  The purpose of the CESU between the U.S. Department of the Interior, U.S. Department of Agriculture, the U.S. Department of Defense, and the universities hosted by the University of Tennessee is to provide research, technical assistance and education to federal land management, environmental, and research agencies and their potential partners; develop a program of research, technical assistance and education that involves the biological, physical, social, and cultural sciences needed to address resources issues and interdisciplinary problem-solving at multiple scales and in an ecosystem context at the local, regional, and national level; and place special emphasis on the working collaboration among federal agencies and universities and their related partner institutions.  The agreement is effective from 2024 to 2029.  Worked covered by the agreement will have an indirect cost rate of 17.5% of total direct costs.  
  
  
• Master Agreement of Commercial and Cooperative Interactions (PDF file) (Please note that clicking on this link will require you to log into a SharePoint site using your Tech username and password.)
  
  The Master Agreement of Commercial and Cooperative Interactions between Tennessee Technological Universityff and the Tennessee Valley Authority (TVA) provides a contractual mechanism for the parties to utilize in conducting the various activities jointly undertaken from time to time.  The agreement is effective from May 15, 2019, through April 30, 2023.  Work covered by the agreement will have an indirect cost rate of 26% of total direct costs. 

For Research, Minimum of 42% of Modified Total Direct Costs

For Instruction (Training), Minimum of 42% of Modified Total Direct Costs
If a funding agency has a policy/guideline prohibiting full indirect cost recovery or has special requirements regarding indirect costs, a copy of the policy must accompany the proposal at the time it is submitted to Research & Economic Development for University approval. If federal funds are "spilled through" a state agency, full federal indirect costs for research are encouraged.

Effective July 1, 2024 | A single fringe benefit rate of 42% is to be applied for employees.  Link to memo