A recent announcement of UVA's new federally negotiated rates for fiscal year 2026 included a new indirect cost rate (IDC) specific to the U.S. Department of Defense (DOD). Specifically, the on-Grounds organized research rate is 64.5%, and the off-Grounds rate is 29%. 

Please be Aware

These rates only apply to federal contracts and federal flow through contracts that are subject to the Defense Federal Acquisition Regulation Supplement (DFARS). The new rate agreement states under "Application of Indirect Cost Rates to DOD Contracts/Subcontracts":

In accordance with DFARS 2231.303, no limitation (unless waived by the institution) may be placed on the reimbursement of otherwise allowable indirect cost rates incurred by an institution of higher education under a DOD contract awarded on or after November 30, 1993, unless the same limitation is applied uniformly to all other organizations performing similar work. It has been determined by the department of Defense that such limitation is not being uniformly applied. Accordingly, the following rates do not reflect the application of the 26% limitation on administrative indirect costs imposed by 2 CFR 200. 

Grants, cooperative agreements, Other Transaction Agreements (OTA), and their respective flow through awards should use UVA's regular rates (i.e., 61.5% for on-Grounds organized research and 26% for off-Grounds). 

Please email ospnoa@virginia.edu with any questions.