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 contract fee is not subject to F&A. An additional line named “Contract Fee” will
be added to the budget, when applicable.
