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Re: indirect cost rates on clinical trials Len Paplauskas 24 May 1994 09:07 EST

The discussion of IDC rates/policies on clinical trials is most helpful and
informative, I hope it continues so that we can get more data from other
institutions.  Here's some info on UCHC's approach.

About 8 years ago, UCHC attempted to develop some type of rationale for
defining an IDC rate which was different from our standard federal research
rate.  Our approach was to examine the various IDC pools which comprise our
research rate, and eliminate those which are not directly involved in support
of clinical trials, or where other mechanisms were in place to support the
overhead associated with the conduct of clinical work.  Thus the "Building
Use" and "O&M" pools were eliminated because clinical trials often include
patient care rates which already have overhead built into them, and UCHC
"recovers" associated overhead already through patient care rates.  We also
eliminated the "Library Use" pool on the grounds that "library useage for
clinical trials is minimal, at best" (this portion of the rationale is
argueable, and could serve as a way of revising the rate in the future).

Thus what we were left with was an IDC rate comprised of two "pools",
Departmental and Sponsored Program Administration, which total 26% (based
upon the "pool structure" of our approved federal IDC rate).  Hence we have
both a "defensible" rationale for charging 26% (TDC), and a clinical trial IDC
rate that is in line with those charged by other institutions.

This approach is not too different from the philosophies expressed by
UIC and UR, but it is grounded solidly on UCHC's negotiated federal IDC rate,
and it fluctuates as the research rate changes, i.e., it has ranged from 24%
to 29% over the years.

This approach helps us, of course, only with our auditors, and not with the
PIs, who complain that "UCHC's rate is one of the 'highest' in the country".

It would be very useful to compile a list of clinical trial IDC rates, and
share them among ourselves.  I would be happy to do this, if readers of this
list will e-mail their rates directly to me.  I'll give this process a few
weeks, and post the results here, and in Techno-L.  As of today we have:

Medical College of Ohio                         25%
University of Connecticut Health Center         26%
University of Illinois                          25%
University of Rochester                         25%

I am assuming everyone's rate is based on a %-age of TDC.  If not, let me
know.

L

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Leonard P. Paplauskas    Assistant Vice President for Research     |
203-679-3173             University of Connecticut Health Center   |
FAX 679-2670             Farmington, CT   06030-5355               |
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