Corporate Sponsored Research Agreement

To initiate a funded contract with a corporation, route the agreement document(s) through AURA Grants as a Funding Proposal (FP). This is necessary to manage the financial aspects of the project. Our subject matter experts will work with you to protect your rights as a PI during contract negotiations. The final contract will be recorded in AURA Agreements as a Funded Research Agreement (FRA).

Your submission should include a budget (more information on budgeting below), a layperson's description of the project, and a scope of work that can be incorporated into the contract.

As a non-profit, The University of Chicago needs to recover all costs related to its performance of research on behalf of other entities. These research contracts are typically budgeted in one of two ways:

• Cost-reimbursement budgets provide for payment of allowable incurred costs up to a maximum prescribed in the contract. In this case, sponsors may be willing to negotiate additional funds if project costs exceed the estimated budget.
• Fixed-Price budgets have set prices paid at certain scheduled milestones.  No additional funding is available if project costs exceed estimates, so investigators should scope these projects carefully to ensure that all costs are covered.
• The University does not have an auditable mechanism to ensure compliance with Time & Materials or Labor Hours budget types.

We encourage departments to use a condensed budget template with corporate sponsors to simplify negotiations. This budget structure incorporates overhead (IDC) into each direct cost line, allowing us to present the sponsor with a budget model familiar to them.

Regardless of how the budget is structured, it should include the appropriate Indirect Cost rate (below) to ensure coverage of facilities and administrative costs that your department generates.

Please note that pre-spending on a Corporate Sponsored Agreement is high risk, especially without written authorization from an authorized company representative. UChicago investigators should refrain from such spending and are advised to consult with the assigned URA contract officer for assistance. 

It is the policy of the Unviersity to request full funding of indirect costs on all grant and contract proposals. The for-profit indirect cost rates are as follows:

• For-profit sponsors funding basic research (including animal studies), instruction, or other sponsored activites: 64% total direct costs
• For-profit sponsors funding clinical testing (human studies) of drugs or devices (See Clinical Trials): 30% total direct costs (Effective September 1, 2020)
• For-profit sponsors funding educational conferences¹ and outreach programs²: 10% total direct costs (Effective 2023)

See the Quick Reference Fact Sheet for detailed information and the most up-to-date IDC rates.

1. ^{Educational conferences using this IDC rate must be unrelated to a new or existing project.}
2. ^{Outreach program IDC may require case-by-case consideration. Input from the PI will be sought regarding how funding came about and how it is related to her/his overall research program.}