Budgeting for Industry Collaborations Adam Carter (05 Dec 2019 12:22 EST)
Re: Budgeting for Industry Collaborations Jerrolds, Elsie Audrey Lyn (05 Dec 2019 12:42 EST)
Re: Budgeting for Industry Collaborations Link, Julie (05 Dec 2019 15:07 EST)
Re: Budgeting for Industry Collaborations Jerrolds, Elsie Audrey Lyn (05 Dec 2019 15:42 EST)
Re: Budgeting for Industry Collaborations Cornelio, Paula M. (12 Feb 2020 12:31 EST)
Re: Budgeting for Industry Collaborations dougm (Doug Mounce) (12 Feb 2020 13:46 EST)

Re: Budgeting for Industry Collaborations dougm (Doug Mounce) 12 Feb 2020 13:46 EST

The simplest example might be hourly rates that include all the costs for research services for each of the personnel who will work on the project.  The sponsor only has to compare competitive pricing to understand the valuation, and it's none of their business how you calculate the rate.

I liked this type of agreement, that usually comes with a cap, because of the close control on activity and scope-creep, and on risk in cases of disagreement about the deliverables or when the sponsor won't pay a monthly invoice, but  I understand why others like to lock-in a big project scope with a big award total based on big milestone payments.  In any case, the hourly rate can be more easily understood, and you can propose the total project cost based on effort estimates by the team however you want to set up the agreement.

Doug Mounce
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From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> on behalf of Cornelio, Paula M. <xxxxxx@WYSS.HARVARD.EDU>
Sent: Wednesday, February 12, 2020 9:31 AM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: Re: [RESADM-L] Budgeting for Industry Collaborations

To piggyback on this question re: industry collaborations –

--Are there institutions that roll their project costs (including full IDC) into a “rate” that can be more easily understood by industry partners?
--If so, has anyone successfully developed budget templates in this regard?

--Lastly, are any institutions charging industry more than its federally negotiated rate?  (I’ve heard of a few instances of using a risk “premium” on top of the rate, charging on a TDC basis, or using an “uncapped” rate).

Thanks in advance,

Paula M. Cornelio
Director of Sponsored Projects
Wyss Institute at Harvard University
3 Blackfan Street, CLSB 131
Boston, MA 02115
Office: 617-432-7008 |Cell: 617-335-9629
Email: xxxxxx@wyss.harvard.edu<mailto:xxxxxx@wyss.harvard.edu>
Web: https://wyss.harvard.edu/

From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> On Behalf Of Jerrolds, Elsie Audrey Lyn
Sent: Thursday, December 5, 2019 3:42 PM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: Re: [RESADM-L] Budgeting for Industry Collaborations

Hi Julie,

That is a good question and I may need some guidance here as well.

I would say that federally funded clinical trial indirects would follow uniform guidance and the federally negotiated rate would still be used if the receiving party has a federally negotiated rate.

Part two of the question regarding the receipt of start-up funds and study maintenance funds, I am not as familiar with but we do faculty here that might use some of their start up package funds for a part of a project (not certain if that is what you may be referencing) but that wouldn’t change the indirect rates that we are required to use on Federal funding received as that is a separate ‘bucket’ of funding.

Maybe someone else can assist with your question as I am interested in responses to the scenario you have presented as well.

Thank you,

Audrey L. Jerrolds, MA, Illini CRA
Grants and Contracts Coordinator

Coordinated Science Laboratory
The Grainger College of Engineering | University of Illinois at Urbana-Champaign
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From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>> On Behalf Of Link, Julie
Sent: Thursday, December 5, 2019 2:08 PM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>
Subject: Re: [RESADM-L] Budgeting for Industry Collaborations

This is helpful Audrey. What about for federally funded clinical trials? If you are receiving your full indirect rate, is it considered “double dipping” to also receive start-up funds and study maintenance funds? Does anyone have a process or policy they would be willing to share?

Thank you,

Julie

Julie Link, MSW, LCSW
System Director, Sponsored Research Administration
CHI Institute for Research and Innovation (CIRI)

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From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>> On Behalf Of Jerrolds, Elsie Audrey Lyn
Sent: Thursday, December 05, 2019 10:42 AM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>
Subject: Re: [RESADM-L] Budgeting for Industry Collaborations

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Hello Adam,

If it is a sponsored research project and the industry is a for-profit entity, we most definitely use our fully negotiated rate.  We do get push back sometimes and our response is that we have to follow funding guidelines consistently as a publicly funded entity and we do incur indirect costs.  We try to kindly remind them as well that they too, have indirect costs that are ‘real’.

I hope this information is helpful!

The policy can be found on our website at https://sponsoredprograms.illinois.edu/research-topics/proposal-budgeting<https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_sponsoredprograms.illinois.edu_research-2Dtopics_proposal-2Dbudgeting-5F-5F-3B-21GtwiFp-2DvfQY-21X-5FMy3kv4eb5vguym-2DDlNX5veNxYttDsqNIaKdsInuLH3DiZPbCp5V2dOCTaUqEj-2D3Ik-24&d=DwMFAg&c=OCIEmEwdEq_aNlsP4fF3gFqSN-E3mlr2t9JcDdfOZag&r=VRhekPYJgXYDL0d_X5WCeiU4y8cUktgiBVLEAMeuFBc&m=9z17vmESpfixSDlLpLQ3kymGqo0bY3sjRKmBOM-ZUSc&s=FtdSxKVGEKXPFcW5irTig-ai2iEzYEMBJ7Q5DOU7w_c&e=>;

“Facilities and administration rates, also known as indirect costs must be included in all budgets unless the sponsor has written policy in the guidelines or their website that states indirect costs are not allowable. The most current university rates<https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_www.obfs.uillinois.edu_government-2Dcosting_rate-2Dschedules_urbana-2Dchampaign_-5F-5F-3B-21GtwiFp-2DvfQY-21X-5FMy3kv4eb5vguym-2DDlNX5veNxYttDsqNIaKdsInuLH3DiZPbCp5V2dOCTaUrpdFXY4-24&d=DwMFAg&c=OCIEmEwdEq_aNlsP4fF3gFqSN-E3mlr2t9JcDdfOZag&r=VRhekPYJgXYDL0d_X5WCeiU4y8cUktgiBVLEAMeuFBc&m=9z17vmESpfixSDlLpLQ3kymGqo0bY3sjRKmBOM-ZUSc&s=arL-THwgRON1e5hxsDMk1T66kduBsx5a1UhQlQVYXr8&e=> may be found at the Office of Government Costing. When projects involve partners located in Research Park, see this matrix<https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_files.webservices.illinois.edu_8079_researchparkmatrixcostbudgeting.docx-5F-5F-3B-21GtwiFp-2DvfQY-21X-5FMy3kv4eb5vguym-2DDlNX5veNxYttDsqNIaKdsInuLH3DiZPbCp5V2dOCTaUH-5FJ3Eqk-24&d=DwMFAg&c=OCIEmEwdEq_aNlsP4fF3gFqSN-E3mlr2t9JcDdfOZag&r=VRhekPYJgXYDL0d_X5WCeiU4y8cUktgiBVLEAMeuFBc&m=9z17vmESpfixSDlLpLQ3kymGqo0bY3sjRKmBOM-ZUSc&s=VQrqhbgT8_XeZDWXrS1QctX_DjJADsNMADiMO1CWFAM&e=> for guidance on the appropriate facilities and administration rates.”

Thank you,

Audrey

Audrey L. Jerrolds, MA, Illini CRA
Grants and Contracts Coordinator

Coordinated Science Laboratory
The Grainger College of Engineering | University of Illinois at Urbana-Champaign
1308 W. Main St. | M/C 228 | Urbana, IL 61801<https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_www.bing.com_search-3Fq-3D1308-2A20w-2A20main-2A20street-2A20urbana-26FORM-3DPRHPHI-26refig-3D66a0f55da4ac4dc68e4985e4a61a300b-26httpsmsn-3D1-5F-5F-3BJSUlJQ-21GtwiFp-2DvfQY-21X-5FMy3kv4eb5vguym-2DDlNX5veNxYttDsqNIaKdsInuLH3DiZPbCp5V2dOCTaU0urcPRU-24&d=DwMFAg&c=OCIEmEwdEq_aNlsP4fF3gFqSN-E3mlr2t9JcDdfOZag&r=VRhekPYJgXYDL0d_X5WCeiU4y8cUktgiBVLEAMeuFBc&m=9z17vmESpfixSDlLpLQ3kymGqo0bY3sjRKmBOM-ZUSc&s=YhxJsuWU46550HENzZ-pHWyMh9Cw9926yrQuFoLIGXs&e=>
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From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>> On Behalf Of Adam Carter
Sent: Thursday, December 5, 2019 11:22 AM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG<mailto:xxxxxx@LISTS.HEALTHRESEARCH.ORG>
Subject: [RESADM-L] Budgeting for Industry Collaborations

Good afternoon,

For those of you who work with industry, what is your process for recovering F&A on these collaborations? Do you assess your negotiated rate, actual rate, or a fixed fee? If you have a policy that governs this process, would you be willing to share?

Thank you.

Adam Carter, CRA
Director, Research Administration and Sponsored Programs
Marine Biological Laboratory
xxxxxx@mbl.edu<mailto:xxxxxx@mbl.edu> | mbl.edu<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.mbl.edu_&d=DwMFAg&c=OCIEmEwdEq_aNlsP4fF3gFqSN-E3mlr2t9JcDdfOZag&r=VRhekPYJgXYDL0d_X5WCeiU4y8cUktgiBVLEAMeuFBc&m=HaTHCjTF_JnFVmz1PAQXCNz1IEvZiVvuOVXKMvH23fQ&s=LNnLbdRSgMGkGv4nD-M2wvgiqJw4sg39lDZA-tomilo&e=>
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