All I see is the contradiction, non-profits subsidizing for-profits.

I'm also completely unclear on why one would give a whit regarding any "written policy" of the for-profit corporation.

Samuela's response is reassuring (and much better written), but maybe it's a California thing?

Rant, rant.....   :)      Glad it's Friday.

 David

> Date:    Thu, 29 Mar 2001 09:52:51 -0500
> From:    Ruth Tallman <xxxxxx@LEHIGH.EDU>
> Subject: Re: F&A Rates for Industrial Sponsors
>
> --------------CDDED41CE0BE66D70A8CDC3C
> Content-Type: text/plain; charset=us-ascii
> Content-Transfer-Encoding: 7bit
>
> Jane,
>
> I will be interested in seeing the responses, too.  We use our
> negotiated rate if we can get away with it.  Frequently the industrial
> sponsor only wants to put up about $50,000 for support of a student, a
> little PI time, and associated supplies, etc.  With full IC, the $50,000
> doesn't go very far so we end up negotiating a rate case by case.
> Totally separate are the research center/liaison program activities
> which are usually $50,000 or less and are charged at a rate of 12.5% so
> that the center can use some of the funds to support their staff and
> expenses.
>
> Ruth Tallman
> Office of Research and Sponsored Programs
> Lehigh University
> 526 Brodhead Avenue
> Bethlehem, PA  18015
> Phone:   (610)758-3024
> FAX:    (610)758-5994
> E-mail:   xxxxxx@lehigh.edu
>
>
> "Youngers, Jane" 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

> Date:    Thu, 29 Mar 2001 13:20:06 -0800
> From:    Samuela Evans <xxxxxx@UCOP.EDU>
> Subject: Re: F&A Rates for Industrial Sponsors
>
> 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.

===================================================================
Mr. David R. Fielder                    tel: 415.600.1600
Vice President, Research                fax: 415.600.1753
California Pacific Medical Center   email: xxxxxx@cooper.cpmc.org
Research Institute                 website: http://www.cpmc.org
2340 Clay Street,  5th Floor
San Francisco, CA 94115
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