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Office of Sponsored Programs (OSP)

Clinical Trials Indirect Costs

University of Washington Correspondence

INTERDEPARTMENTAL

September 27, 2011

Subject: Rate Change for Industry Sponsored Clinical Trials

Effective October 1, 2011 the Facilities and Administrative (F&A) rate charged on industry sponsored clinical trials will increase from 25% to 27%. This rate is based upon Total Direct costs (TDC) which includes patient care costs (please see GIM 13).

Background:

The UW clinical trial rate of 25% was set 15 years ago based upon the market comparison with peer institutions at that time and has not been re-assessed since then. Recently, OSP conducted an informal review of the rates for peer institutions and found that our rate was lower than many of our peers. In addition, a national Clinical Trials Working Group conducted a survey and found that the average industry sponsored clinical trial rate for their sample group was 27.1%. Based upon the current industry average, UW has determined that the 27% rate is equitable and should not affect our competitiveness.

Process:

New projects submitted to the Clinical Research Budget and Billing Support Office (CRBB) on or after October 1, will be subject to the 27% rate. Projects submitted to CRBB prior to October 1st will remain at the 25% rate, as will amendments to existing contracts. There will be no change in the distribution of recovered F&A costs.