diff --git a/app/models/protocol.rb b/app/models/protocol.rb
index c2b56a74a4..98b4dbd924 100644
--- a/app/models/protocol.rb
+++ b/app/models/protocol.rb
@@ -62,7 +62,7 @@ class Protocol < ApplicationRecord
   validates :research_master_id, numericality: { only_integer: true }, allow_blank: true
   validates :research_master_id, presence: true, if: :rmid_requires_validation?
 
-  validates :indirect_cost_rate, numericality: { greater_than_or_equal_to: 1, less_than_or_equal_to: 1000 }, allow_blank: true
+  validates :indirect_cost_rate, numericality: { greater_than_or_equal_to: 1, less_than_or_equal_to: 1000 }, allow_blank: true, if: :indirect_cost_enabled
 
   attr_accessor :requester_id
   attr_accessor :validate_nct
@@ -552,6 +552,10 @@ def has_incomplete_additional_details?
 
   private
 
+  def indirect_cost_enabled
+    Setting.find_by_key('use_indirect_cost').value
+  end
+
   def notify_remote_around_update?
     true
   end
diff --git a/db/migrate/20171107195635_correct_bad_indirect_cost_data.rb b/db/migrate/20171107195635_correct_bad_indirect_cost_data.rb
new file mode 100644
index 0000000000..0d5415a811
--- /dev/null
+++ b/db/migrate/20171107195635_correct_bad_indirect_cost_data.rb
@@ -0,0 +1,9 @@
+class CorrectBadIndirectCostData < ActiveRecord::Migration[5.1]
+  def change
+    protocols = Protocol.where(indirect_cost_rate: 0.0)
+    protocols.each do |protocol|
+      protocol.indirect_cost_rate = nil
+      protocol.save(validate: false)
+    end
+  end
+end
diff --git a/spec/models/protocol/valid?_spec.rb b/spec/models/protocol/valid?_spec.rb
index a9ca538a0c..94d962d616 100644
--- a/spec/models/protocol/valid?_spec.rb
+++ b/spec/models/protocol/valid?_spec.rb
@@ -38,6 +38,19 @@
     end
   end
 
-  it { is_expected.to validate_numericality_of(:indirect_cost_rate).is_greater_than_or_equal_to(1) }
-  it { is_expected.to validate_numericality_of(:indirect_cost_rate).is_less_than_or_equal_to(1000) }
+  context 'indirect cost is turned off' do
+    it 'should not validate indirect cost' do
+      is_expected.not_to validate_numericality_of(:indirect_cost_rate).is_greater_than_or_equal_to(1)
+      is_expected.not_to validate_numericality_of(:indirect_cost_rate).is_less_than_or_equal_to(1000)
+    end
+  end
+
+  context 'indirect cost is turned on' do
+    stub_config("use_indirect_cost", true)
+
+    it 'should validate indirect cost' do
+      is_expected.to validate_numericality_of(:indirect_cost_rate).is_greater_than_or_equal_to(1)
+      is_expected.to validate_numericality_of(:indirect_cost_rate).is_less_than_or_equal_to(1000)
+    end
+  end
 end