Baylor College of Medicine Indirect Cost Rate Agreement

Baylor College of Medicine (BCM) is one of the leading medical institutions in the United States. It is renowned for its innovative research and educational programs, which have helped to advance the field of medicine. One aspect of its success is its ability to secure funding from government agencies, foundations, and other organizations. To do this, it must have a clear understanding of its indirect cost rate agreement.

What is an Indirect Cost Rate Agreement?

An indirect cost rate agreement is a contract between an organization and a funding agency that determines the percentage of indirect costs that the organization can recover from a grant, contract, or cooperative agreement. Indirect costs are expenses that are not directly associated with a project, such as rent, utilities, and administrative salaries. These costs are necessary for the organization to operate, but they cannot be easily attributed to a specific project.

The indirect cost rate agreement is important because it helps the organization to recover some of the costs associated with running the institution. Without this agreement, BCM and other institutions like it would struggle to maintain the staff and infrastructure necessary to conduct cutting-edge research and provide quality education.

BCM`s Indirect Cost Rate Agreement

BCM has an indirect cost rate agreement with the Department of Health and Human Services (DHHS). This agreement allows the institution to recover a percentage of its indirect costs associated with research projects funded by the DHHS.

The current indirect cost rate for BCM is 60.5%. This means that for every dollar of direct costs associated with a research project, BCM can recover an additional 60.5 cents to cover indirect costs. This rate is reviewed and renegotiated periodically to ensure that it accurately reflects the costs associated with operating the institution.

The DHHS requires BCM to submit an indirect cost proposal each year, which details the institution`s indirect costs. This proposal includes information on salaries, service centers, and other expenses associated with indirect costs. DHHS experts review the proposal, and negotiations take place to determine the rate at which BCM can recover these costs.


In conclusion, the indirect cost rate agreement is an essential component of BCM`s ability to carry out its mission. By recovering some of its indirect costs, BCM can maintain the staff and infrastructure necessary to conduct cutting-edge research and provide quality education. Understanding the specifics of this agreement is vital for anyone who works with or supports BCM`s mission.

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