Part V - TRAC fEC

Section A: Overview

The background to TRAC fEC is described in Part 1 Overview.

1. The aims of the costing methods described in this part of the Guidance are:
   • pre-award, to produce a forecast (an estimate) of the cost of a research project by completing a project costing schedule; and
   • post-award, to charge to a project cost record the costs subsequently incurred on that project during its life.
2. The costs should be calculated on a full economic cost basis (fEC), as described in this part of the TRAC Guidance.
3. The fEC of a project consists of:
   • directly incurred costs
     • research staff
     • technical and clerical staff costs
     • non-staff costs (consumables, equipment purchase, etc.)
   • directly allocated costs
     • principal and co-investigators’ time and costs
     • estates costs (including the infrastructure adjustment)
     • charges for laboratory technicians and major research facilities
   • indirect costs (including the cost of capital employed).
4. The fEC of a project is not dependent upon what the sponsor will pay, which is the price. The difference between the fEC and the price is the institutional contribution, or the institutional surplus available for re-investment.
5. fEC is used to inform prices – either directly (fEC-based prices) or indirectly (market-based prices).
   

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