Certified Research Administrator Practice Exam

Which federal agencies will negotiate indirect costs rates with institutions?

1. DHHS and ONR

2. NSH and ONR

3. DHHS and NSF

4. DHHS and DoD

The correct answer is: DHHS and ONR

The answer is supported by the specific roles that the Department of Health and Human Services (DHHS) and the Office of Naval Research (ONR) play in the negotiation of indirect cost rates. The DHHS has a significant presence in funding research through its various institutes and provides guidelines for institutions when it comes to negotiating indirect costs. This process often involves the use of a central agency to ensure established rates are applied consistently across federal grants. The ONR, as part of the U.S. Navy, also negotiates indirect cost rates with institutions that receive federal funding for research purposes. It is crucial for research administrators to understand which agencies are involved in this aspect of grant management because indirect costs can significantly impact the overall funding a research project receives. In contrast, while other federal agencies such as the National Science Foundation (NSF) and the Department of Defense (DoD) have their own rules and policies regarding indirect costs, they do not traditionally negotiate rates in the same manner as DHHS and ONR. The NSF uses a consistent negotiated indirect cost rate for all federal grants it provides, and some agencies set fixed rates rather than negotiating each time. Understanding these distinctions is essential for managing research funding effectively.