Contract Fee Guidelines

A contract fee is a mechanism to recover costs associated with research and development that are not otherwise allowable as direct or an indirect cost of a sponsored project.  It is Michigan Tech's practice and intent to request fee on all federal contracts for which it is not explicitly prohibited.

The contract fee is reinvested in for-purpose work to cover research and administrative costs that are not directly funded by sponsored projects or included in facilities and administrative (F&A) costs.  The contract fee is used for equipment, staff bridging, pre-proposal research and development expenses, and risk.

The Principle Investigator (PI) is expected to discuss with the technical point of contact the intent to include a contract fee in the proposal prior to submission to the sponsor. The contract fee is not subject to F&A. An additional line named “Contract Fee” will be added to the budget, when applicable.