Ucsd Idc Agreement

UCSD IDC Agreement: What it is and Why it Matters

UC San Diego (UCSD) is a renowned research institution and a hub of innovation and discovery. To support its research endeavors, UCSD often collaborates with government agencies, private organizations, and other academic institutions and receives funding for its research activities.

One important aspect of these collaborations and funding agreements is the indirect cost rate (IDC) agreement. IDCs are the costs associated with conducting research that are not directly attributable to a specific project or grant, such as administrative, facilities, and other operational expenses. IDC rates are negotiated between the university and the funding agencies to determine the percentage of indirect costs that will be covered by the grant.

The IDC agreement establishes the maximum IDC rate that the university can charge on its research grants and contracts. The rate is negotiated between UCSD and its cognizant federal agency and approved by the Department of Health and Human Services (DHHS).

Why is the IDC agreement important?

The IDC agreement is critical in ensuring that UCSD is fairly compensated for the indirect costs of research and that it has the necessary resources to support its research mission and infrastructure. Without sufficient IDC recovery, UCSD would have to use other sources of revenue to cover its indirect costs, which could divert resources from other critical activities.

Moreover, the IDC agreement helps UCSD maintain its competitiveness in securing research funding from various sources. Federal agencies such as the National Institutes of Health (NIH) and the National Science Foundation (NSF) typically require that their grants cover indirect costs based on a negotiated IDC rate. Without an IDC agreement, UCSD would be at a significant disadvantage in securing funding from these agencies compared to other research institutions with IDC agreements in place.

In summary, the IDC agreement is a critical component of UCSD`s research infrastructure and funding strategy. It helps ensure that the university is fairly compensated for the indirect costs associated with its research, and it helps maintain its competitive position in securing research funding from various sources.


The IDC agreement may seem like a technical and esoteric concept, but it is an essential aspect of UCSD`s research operations. As a professional, it is important to understand the significance of the IDC agreement and its role in ensuring that UCSD continues to be a leading institution in research and innovation.