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July 1, 2025
UAF faculty and staff,
In my message on Tuesday June 17, I shared that there have been discussions at the federal level
regarding federally negotiated facilities and administration (F&A) rates and indirect
cost recovery (ICR). As I shared previously, we have seen a 15% cap on F&A proposed
by multiple funding agencies. While the implementation of these caps has been stayed
or is subject to temporary restraining orders, there are continuing conversations
about potential changes to the currently negotiated F&A rates and associated implementation
guidance. As part of these discussions, several national associations came together
to form the Joint Associations Group (JAG) in order to take a close look at this issue
and propose alternatives. To date, the JAG has put forward two potential F&A models
and solicited feedback on these models from universities across the country. We anticipate
that a third model will be released for examination sometime next week.
While we do not know what rate will ultimately be adopted, we anticipate that a change
is coming. We will be asking deans and directors to take a preliminary look at what
a lower F&A rate might look like, and solicit ideas around managing those changes.
While the lower proposed F&A rates would present financial challenges, it is an opportunity
to take a fresh look at how we operate and how we can evolve as a research institution.
This moment encourages innovation, collaboration, and strategic alignment to ensure
UAF remains strong and adaptable. The insights gathered through this preliminary request
will help inform UAF’s response to align with institutional goals and priorities to
support strategic discussions moving forward.
Recently, John Latini, the executive director of federal relations, held three listening
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