They use an index called the BIRDPI - pronounced "bird-pie".  It's a
complicated set of numbers based on inflation over the past several years,
cost of living, etc. - it's a government generated number - not limited to
NIH.

>===== Original Message From Research Administration Discussion List
<xxxxxx@HRINET.ORG> =====
>Hi all-
>
>Does anyone know how NIH came up with the 3% adjustment factor used to
>calculate future year direct costs?  Is it tied to a particular index?  Was
>it pulled out of a hat?  Thanks!!
>
>Teresa Carr Dillinger
>Coordinator, Research Programs & Services
>University of Florida, HSC Jacksonville
>Office of Research Affairs
>653-1 West 8th Street
>Jacksonville, FL  32209-6511
>Tel: (904) 244-6693
>Fax: (904) 244-6844
>
>
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