Overhead Recovery and Markup Revenue

In order to recover overhead costs that UCLA incurs, the rate charged to External Customers must be, at a minimum, the Breakeven Rate plus the Overhead Recovery. The department may charge an additional mark-up to External Customers in order to provide services at market rates.

External Rate = Breakeven Rate + Overhead Recovery + Mark-up

The current approved overhead recovery rate is 38%.

The overhead recovery rate will not be implemented automatically when the updated Policy 340 is effective. All Sales and Service funds will go through a review over the next year or two, the Sales and Service office will work with department to determine the implementation process of the overhead recovery rate.