4.6 Eligible costs for infrastructure projects

Eligible costs are defined as the costs of acquiring or developing research infrastructure. Institutions must report the full cost of each item. The taxes net of credits received may be included. Taxes must not be calculated on an in-kind portion. At the application and award finalization stages, the expected cost at the anticipated acquisition date should be reported (i.e., consider expected price fluctuations such as inflation). Examples of eligible and ineligible costs are provided below. Additional details of costs relating to personnel, construction or renovation and databases are provided in the following sections. Program-specific eligible and non-eligible costs are detailed in the relevant call for proposals or fund guidelines. If a particular item is not clearly defined as eligible or non-eligible, the CFI will consider the request on a case-by-case basis.

All eligible costs must be incurred within the project timelines specified in section 4.1.1.

Eligible costs

• Purchasing research equipment and components, either new or used: The CFI supports cost-effective and environmentally sustainable procurement of research infrastructure, including refurbished equipment. Refurbished or used infrastructure must function as needed and remain operational for the project’s duration.
• Leasing research infrastructure: Leasing is acceptable if it offers advantages in research-readiness, cost effectiveness, operations, or added capacity. The institution must explain why leasing is the preferred option. The duration of the lease must cover a period sufficient to carry out the research activities described in the proposal.
• Travel to a manufacturer, dealer or supplier to select research infrastructure: This includes meal per diems and costs of carbon offsets for travel. Travel necessary to install eligible infrastructure, where the site is remote or separate from the institution is also eligible. These costs must adhere to the National Joint Council Travel Directive (NJC) and the standards set out in the current Treasury Board Directive on Travel, Hospitality, Conference and Event Expenditures (THCEE).
• The starter kit included with the infrastructure: Any additional purchase of consumable items (e.g., booklets, response sheets, disposable pipettes) is not eligible.
• Shipping, transportation and installation of research infrastructure: This includes brokerage fees, excise taxes and duties.
• Initial training on the operation and maintenance of the research infrastructure: This should be limited to the main operator(s) of the infrastructure. It is expected that the main operator(s) will train other users. Alternatively, the vendor may conduct an initial group training session at the institution.
• Warranties and service contracts: This includes service contracts and warranties purchased with the infrastructure or for existing equipment necessary to conduct the research or technology development program, whether funded by the CFI or not. Refer to section 4.7 as some costs related to warranty and service contract may be eligible under the Infrastructure Operating Fund (IOF).
• Development of standard operating procedures or user guides: This appliesonly to procedures or guides for using custom in-house built equipment.
• Software subscriptions and licences (e.g., software, metaverse space): Refer to section 4.7 as some costs related to software subscriptions and licences may be eligible under the IOF.
• Cloud computing and storage: Refer to section 4.6.4 for additional information on advanced research computing.
• Acquisition or design, development and maintenance of a database: Refer to section 4.6.3 for more information about eligible and non-eligible database costs.
• Communications infrastructure: This includes infrastructure essential for the research activities described in the proposal.
• Salaries (including benefits) of professional, technical and managerial personnel, consultants and contractors directly involved in the design, engineering, manufacturing, installation, construction or renovation of the infrastructure: Tasks must be for eligible activities. If an individual undertakes both eligible and non-eligible activities, the costs must be prorated accordingly. Institutions should consult the relevant call for proposals for further guidance on eligible personnel costs. Refer to section 4.6.1 for more information about eligible and non-eligible personnel costs.
• Laboratory furniture: This includes, for example, fume hoods, work benches, workstations to perform data analysis and essential furniture in an eligible collaborative space.
• Construction or renovation of space essential to house and use the infrastructure or to conduct the research activities described in the proposal: Refer to section 4.6.2 for more information about eligible and non-eligible renovation and construction costs.
• Costs related to the physical security of the space where the infrastructure is housed: This includes, for example, access control systems.

Non-eligible costs

• Purchase or lease of real property
• Infrastructure that is not primarily used for research or technology development: When infrastructure is dual purpose (e.g., research and clinical use), costs must be prorated accordingly. If the infrastructure will be used for other purposes, only include the amount for each item based on the proportion the item will be used for research, technology development and associated training.
• Office furniture and supplies
• Internal fees: This includes user fees for core facilities, for example.
• Operating costs: These are related to the general maintenance and ongoing operations of the research infrastructure and of the building or other facilities in which the research infrastructure is situated. Refer to section 4.7 for the eligibility of operating costs under the IOF.
• Supplies and consumables: These are not eligible unless they are included in a starter kit acquired with the infrastructure. Refer to section 4.7 for the eligibility of supplies and consumables under the IOF.
• Stipends for trainees (undergraduates, graduates and postdoctoral fellows) and researcher salaries: Remuneration for students or trainees may be eligible if a job description and related salary are documented for eligible tasks and are separate and distinct from a student’s stipend or honorarium.
• Research-related costs: This includes primary data collection, recruitment initiatives and publication fees, for example.
• Creation of standard operating procedures or user guides for research activities using commercial off-the-shelf infrastructure
• Travel to conferences or to conduct research activities
• Hospitality costs: This includes provision of meals, beverages or refreshments during events, including alcoholic beverages.
• Knowledge mobilization costs: This includes signage, marketing, advertising and other costs related to promotional materials.
• Administrative costs not specifically listed as eligible costs: This includes purchasing or obtaining quotes for infrastructure and the creation of documentation to conform to legal or responsible conduct of research requirements, such as the use of personal health information, for example.
• Generic contingencies on eligible costs other than construction or renovation costs: As outlined in the first paragraph of this section, the institution should include the expected cost of the requested infrastructure at the anticipated acquisition date (i.e., consider expected price fluctuations such as inflation). Institutions should not, however, apply a blanket amount across all items to account for possible cost increases.

4.6.1. Personnel

The costs of retaining professional, technical and managerial personnel, consultants and contractors directly involved in the design, engineering, manufacturing, installation, construction or renovation of the infrastructure are eligible. If an institution retains the services of an external provider, the full cost of that provider is considered eligible, assuming it is related to eligible activities. Alternatively, an institution may have professionals, technicians, managers and consultants on staff to perform eligible activities.

Normally, each institution has its own established practices that dictate how costs associated with internal services are charged. Although internal practices vary, they usually consist of one or more of the following:

• The actual salary cost of the individual plus benefits, multiplied by the actual time
• An internal rate reflecting an average salary cost plus associated benefits, multiplied by the actual time
• An internal rate reflecting an average salary cost plus associated benefits plus overhead component, multiplied by the actual time
• An approved internal fee for service, which may include an overhead component
• In the case of architectural and/or engineering and/or project management costs related to construction or renovation projects, a fixed percentage of total construction or renovation costs. (The percentage may include an overhead component.)

The CFI accepts the first two practices under any circumstances. It accepts the other three practices only if each of the following conditions is met:

• The institution does not recuperate (using an internal rate, fee or fixed percentage) more than the full costs of what a department has incurred in providing the services
• The institution does not seek reimbursement from other sources for department costs covered by the CFI
• The institution should report expenditures for a CFI-funded project using the same methods it applies to similar activities not related to CFI projects
• The internal rate, fee or fixed percentage of construction or renovation costs used is the same as that for all other internal clients
• The internal rate, fee or fixed percentage used is less than or equal to fair market value.

If one of these conditions is not met, then the first two practices must be used.

The costs of retaining professional, technical and managerial personnel, consultants and contractors directly involved in the design, engineering, manufacturing, installation, construction or renovation of the infrastructure are eligible. If an institution retains the services of an external provider, the full cost of that provider is considered eligible, assuming it is related to eligible activities. Alternatively, an institution may have professionals, technicians, managers and consultants on staff to perform eligible activities.

Normally, each institution has its own established practices that dictate how costs associated with internal services are charged. Although internal practices vary, they usually consist of one or more of the following:

• The actual salary cost of the individual plus benefits, multiplied by the actual time
• An internal rate reflecting an average salary cost plus associated benefits, multiplied by the actual time
• An internal rate reflecting an average salary cost plus associated benefits plus overhead component, multiplied by the actual time
• An approved internal fee for service, which may include an overhead component
• In the case of architectural and/or engineering and/or project management costs related to construction or renovation projects, a fixed percentage of total construction or renovation costs. (The percentage may include an overhead component.)

The CFI accepts the first two practices under any circumstances. It accepts the other three practices only if each of the following conditions is met:

• The institution does not recuperate (using an internal rate, fee or fixed percentage) more than the full costs of what a department has incurred in providing the services
• The institution does not seek reimbursement from other sources for department costs covered by the CFI
• The institution should report expenditures for a CFI-funded project using the same methods it applies to similar activities not related to CFI projects
• The internal rate, fee or fixed percentage of construction or renovation costs used is the same as that for all other internal clients
• The internal rate, fee or fixed percentage used is less than or equal to fair market value.

If one of these conditions is not met, then the first two practices must be used.

4.6.2. Construction and renovation

Infrastructure projects may involve the construction of a new building or the development of new space in an existing building (e.g., new floors, reconfiguration of existing space) when space is essential to house and use the infrastructure or to conduct the research activities described in the proposal. When equipment is intended for newly constructed or renovated spaces, institutions should time procurement to ensure the equipment can be used immediately upon delivery. Where there is an option to either renovate an existing building or construct a new building, the cost-effectiveness of each option must be analyzed. If the most cost-effective option is not chosen, this must be justified and approved by the CFI.

Eligible costs

• Direct construction or renovation costs, soft costs (e.g., site development and planning, architectural, design and other services, permits, insurance) and contingency costs (i.e., amount budgeted for unforeseen costs; not to exceed 10 percent of the construction or renovation costs) for:
  • Space to house the infrastructure (e.g., laboratories, animal facilities, computer rooms, greenhouses)
  • Space to use the infrastructure or conduct research (e.g., workstations, storage areas, technicians’ offices, interview rooms)
  • Collaborative space that is directly related to and essential for the proposed research and primarily used for research activities (e.g., focus group space, culturally safe spaces for collaborations with Indigenous communities)
  • Additional space to house and use other eligible infrastructure (i.e., not part of the current proposal) that is essential for the proposed research activities
  • Essential (i.e., as required by building codes) common elements (e.g., custodial areas, circulation areas, stairways, elevator shafts, mechanical and utility areas, space occupied by structural features, such as fire walls)
• Costs related to the essential modification of the space immediately adjacent to the CFI-eligible constructed or renovated space that are a direct result of the construction or renovation of the eligible space
• Costs related to the physical security of a new or renovated space (e.g., access control systems).
• Travel costs necessary for site development and planning, where the site is remote or separate from the institution. These costs must adhere to the National Joint Council Travel Directive (NJC) and the standards set out in the current Treasury Board Directive on Travel, Hospitality, Conference and Event Expenditures (THCEE).
• Construction or design allowances, which are the costs of certain items or work that may not be fully defined when developing the proposal and different than contingency costs, are permitted but must be commensurate with a construction or renovation project that is developed well beyond the conceptual stage.
• Fees to cover general business expenses. Fees to cover profit margins are also allowed when applied by an external construction contractor or company. 

Budget expectations

Expected price fluctuations from the time of application to the start of construction should be included in direct and soft costs and not included as part of the contingency costs. These fluctuations — such as inflation, tariffs, or exchange rates — affect each cost type differently and should be reflected in specific budget items, not grouped separately. Institutions are responsible for setting acceptable inflation or escalation cost limits.

Laboratory furniture should be identified separately in the overall project budget costs (i.e., not under construction or renovation), unless the equipment is directly integrated into the construction or renovation work (e.g., benches and fume hoods).

Non-eligible costs

• Direct construction or renovation costs, soft costs and contingency costs for:
  • Space for non-research use (e.g., administration, teaching and clinical services)
  • Space to house non-eligible equipment
  • Office space for faculty, administrative staff and students
• Costs to relocate existing tenants or an existing lab
• Landscaping costs
• Art collections
• Administrative costs

4.6.3. Databases and digital libraries

A research database is a systematic collection of information that is designed and structured for access and use as a research tool. It may be housed in one central location or distributed across a network. For the purpose of these guidelines, a digital library is considered to be a database. CFI funding will focus on the acquisition or the design, development and maintenance of a database. Database-related personnel costs are eligible if they are incurred before the project end date.

Eligible costs

• Computers, communications hardware and software
• Purchase of existing datasets or digital collections[1]
• Technical or professional work required for the design, development and maintenance of a database, including:
  • Data cleaning (i.e., verification, editing), coding, format conversion, data entry and data transfer
  • Design, development, beta testing, piloting, commissioning and integration of the database
  • Merge and organization of existing data that are not already in usable reference units
  • Customization of tools to enhance value for the user (e.g., intelligent search)
  • Help to researchers and other users to appropriately operate and access the database
  • Maintenance of the database and integration of updated data sets and information
• Development of user guides
• Construction or renovation of a facility to house and use the database

Non-eligible costs

• Research costs to produce a dataset or database, including:
  • Primary data collection
  • Questionnaire development
  • Survey protocol design
  • Development of sampling methodologies
  • Fieldwork
  • Surveys and interviews
• Fees for accessing a database for research use
• Research activities using the database
• Construction or renovation of conventional libraries
• Costs to maintain library collections
• Conventional collections

4.6.4. Advanced research computing infrastructure

Institutions may submit proposals including advanced research computing infrastructure and related resources to carry out a research or technology development project. However, proposals that focus predominantly on major, collective and shared advanced research computing infrastructure are not eligible for funding. These advanced research computing needs are addressed through the Digital Research Alliance of Canada (the Alliance). Refer to the infographic about funding pathways provided on the Alliance's website for further clarification.

Advanced research computing infrastructure normally includes systems or resources such as:

• Capacity or throughput computing
• Capability computing supporting tightly coupled, fine-grained applications
• Shared memory systems
• Systems supporting very large memory requirements
• High-performance storage
• Long-term storage
• Cloud computing
• Computing using specialized accelerators including GPU, CPU and others
• High-performance visualization systems
• Systems suitable for computational steering and interactive use.

Investments in advanced research computing infrastructure are maximized when those resources 
are shared. Since the CFI expects advanced research computing infrastructure costing more than $100,000 to be integrated into a national platform, institutions should consult with the Alliance 
(CFI-FCI [at] alliance.ca (CFI-FCI[at]alliance[dot]ca)) before submitting proposals requesting advanced research computing infrastructure. The CFI may share such proposals with the Alliance.