Examples
Worked examples
- Is an instance
A budget of $500,000 direct costs includes a $200,000 subaward; the MTDC base is $325,000 ($500,000 - $200,000 + $25,000).
- Is an instance
Equipment over $5,000 per unit is excluded from MTDC under the standard threshold.
Counter-examples
Looks similar, but isn't
- Not an instance
Total Direct Cost (TDC) without modifications is a different base used by some non-federal sponsors.
- Not an instance
Total Project Cost (direct plus indirect) is not MTDC.
Editorial commentary
MTDC standardises the indirect-cost base across institutions so that F&A rates are comparable. Standard exclusions ensure that large pass-through items (subawards, equipment) do not artificially inflate overhead recovery. The first $25,000 of each subaward is included in MTDC; any amount beyond is excluded. Definitions are codified at 2 CFR 200.1. Mis-application of MTDC, particularly subaward exclusion thresholds, is a common audit finding.
References
- US Office of Management and Budget Uniform Guidance 2 CFR 200.1.
Also known as
Modified Total Direct Cost · MTDC base
Machine-readable encodings
Use in your systems
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vocab-term="MTDC (Modified Total Direct Cost)"
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"description": "The base to which a US federal indirect cost rate is applied, equal to total direct costs minus excluded items (typically equipment over a threshold, capital expenditures, patient care, tuition remission, rental costs, scholarships, and the portion of each subaward exceeding $25,000).",
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