Are indirect costs allowed as a part of the budget for approved Engagement Awards? If so, are they limited to a certain percentage?

Yes U.S. institutions may apply an approved indirect rate of up to 40%, while international institutions may only apply an indirect rate of 10% to the project’s direct cost base.

If an applicant organization’s federally-negotiated, or independently audited, indirect rate is less than 40% (domestic) or 10% (international), then the applicant must apply the lower negotiated rate to the allowable direct cost base.

If an applicant organization has multiple rates, then it should choose the rate that complies with the conditions of the approved IDC rate agreement. Typically, this is the rate that applies to where the PI conducts the research.