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Office of Sponsored Programs (OSP)

Clinical Trials Indirect Costs

University of Washington Correspondence


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).


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.


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.