University of California policy is to use the applicable federal indirect
cost rate with extramural awards from for-profit sponsors which are not
clinical trials.  The State Auditor has ruled that reductions of indirect
cost rates to such organizations are a gift of public funds for private
benefit as the sponsor is not reimbursing the University for the full cost
of the project.   If there is an overriding vital interest reason for the
University to accept such an award at a rate lower than the applicable
federally approved rate, then intellectual property considerations must be
taken into account as the for-profit sponsor should not receive exceptions
to standard intellectual property rights, a potentially valuable
consideration, when it is not paying the full costs of the research project.

I believe that there are institutions which apply their actual indirect
cost rate, one without the 26% admin cap in it, to awards from for-profit
corporations.

At 03:50 PM 3/28/01 -0600, you wrote:

>Good afternoon.
>
>I know that in the past we have compiled information on F&A rates used in
>clinical studies sponsored by pharmaceutical companies.  But I am not sure
>we have compiled information on F&A rates used for industrial sponsors of
>research.  By this I mean, XYZ company funds a research project in Dr. J's
>lab.
>
>If you would be willing to share your rates with me, I would be willing to
>compile them and share them back.
>
>I am interested in:
>
>1.  What F&A rate do you use for research projects funded by industry?
>2.  What is your federal on-campus research rate?
>3.  If there is a difference, why?
>
>Thanks.
>
>Jane
>Jane A. Youngers
>Director, Grants Management
>University of Texas Health Science Center at San Antonio
>Mail Code 7828
>7703 Floyd Curl Drive
>San Antonio TX  78229-3900
>210.567.2333
>210.567.2344 fax
>xxxxxx@uthscsa.edu

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