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NSF has started using an ACR overhead rate of 7.82% that is applied to the direct (programmatic) costs for all “incoming” IAAs (see example calculation below). This change from an ACR “deductive” rate to an overhead rate results in no net change of the administrative overhead fees that NSF has or will collect this fiscal year.

ACR Overhead Fee Calculation Example:

Direct (programmatic) costs of $100,000 x 7.82% overhead rate = $7,820

Total IAA amount of $107,820 = $100,000 direct costs + $7,820 overhead fee

Collection of an ACR fee is required for NSF to recover its costs associated with servicing agreements from other U.S. Government agencies to avoid augmentation of NSF’s appropriations for performing services on behalf of an another (Requesting) federal agency. This change in ACR fee methodology is intended to facilitate negotiation of “incoming” IAAs and to ensure accurate calculation.

In the rare circumstance that the Requesting Agency has only identified a lump sum amount that is available for transfer, NSF can calculate the portion of the lump sum that will be used for the programmatic activity under the IAA by dividing the lump sum by 100% plus the overhead rate. The resulting programmatic direct cost amount can then be multiplied by the overhead rate as shown below:

Lump Sum Example: 

$100,000 (total cost) ÷ (100% + 7.82% overhead rate) = $92,747 direct (programmatic) cost

$92,747 (direct cost) x 7.82% (overhead rate) = $7,253 overhead fee

Total IAA Amount = $100,000