Dept. of Defense Indirect Cost Rate

Greetings, 

The UW is aware of this Dept. of Defense (DoD) memo indicating they intend to impose a 15% (or lower) indirect cost rate cap on new awards as of 21 days after 5/14/2025. 

The memo further indicates the DOD will attempt to renegotiate all existing awards within 30 days of the memo. Where cooperative modification is not possible, termination and reissuance under new terms may be pursued—all to be completed within 180 days. 

Proposals:

Please continue to use the UW’s negotiated IDC rate in your DoD proposals. The University reserves the right to pause submission of proposals to DoD that are responding to notice of funding opportunities that require use of the 15% rate. 

Rebudgeting on submitted proposal, not yet awarded:

Any PI that is approached to rebudget so their proposal includes the 15% rate should notify OSP osp@uw.edu immediately. Include the original request and any additional attachments provided by the DoD contact. 

New awards: 

Any new award that includes an IDC rate lower than the UW’s negotiated rate will require additional review to determine if the UW can accept the award. These awards will be placed on HOLD in OSP. 

Rebudgeting on existing awards: 

Any PI that is approached to rebudget an existing award so it includes the 15% rate should submit that request via an OSP/GCA Modification in SAGE AND also notify OSP osp@uw.edu with the original request for further analysis. 

We expect to see more details from DoD once it publishes formal policy guidance. 

Thank you, 
The Office of Research and the Office of Sponsored Programs