We are a state university and may have lower F&A rates when contracting with other state institutions or other components within the UT System.  But we do not waive them; the key is that they are state resources and not private ones to give away.

That's of course, another perspective.

Kathy Tragos
The University of Texas at San Antonio
210-458- 7323

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Beth W Seaton
Sent: Monday, March 02, 2009 11:50 AM
To: xxxxxx@hrinet.org
Subject: [RESADM-L] contracts for services & F&A

We have a division on campus that performs technological services to several outside agencies on a work for hire basis.  These services might be creating on-line training materials, hosting websites, or similar types of projects.  Sometimes the funding agencies are state agencies, sometime local educational agencies, and sometimes for-profit companies.

I believe that we should always charge full facilities and administrative (indirect) costs on these projects, but the division in question argues that we should waive a portion or all of our overhead because we are providing services to state or local educational agencies.  Sometimes they say they want to waive the F&A just to "be more competitive."

Besides the obvious fact that we would be under-recovering our true cost of operation, isn't there a problem with us waiving a portion of our costs and thereby possibly undercutting for-profit firms that might be able to bid on these contracts?

Any advice is welcome.

Beth Seaton
Western Illinois University
309-298-1191

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 subscription information and a web-searchable archive, are available
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