The May 19, Federal Register (59 FR 26143) included an interim rule
effective 05/05/94 to prohibit limitation on reimbursement of otherwise
allowable indirect costs incurred by institutions of higher education under
DOD contracts.  This was a result of Section 481 of the National Defense
Authorization Act for FY 1984 - which basically abrogates the 26%
limitation on administrative indirect costs presently in A-21.

 This is interesting and seems contradictory with other congressional
actions.  Can anyone shed light on the background for this and suggest what
it might mean in a broader context?

Terry A. May, Ph.D.                       Voice:    602-523-6788
  Director of Research Administration     FAX:      602-523-1075
  Office of Grant & Contract Services     INTERNET: xxxxxx@nauvax.ucc.nau.edu
  100 Babbitt Admin. Ctr., Box 4130
  Northern Arizona University
  Flagstaff, AZ  86011-4130