Re: Administrative Fee James Beall 13 Oct 1994 08:42 EST

Message authorized by:
 : xxxxxx@GRANTS.WM.EDU_at_internet at X400PO
 Mike, I am still a bureaucrat and manage health effects
 research for the Department of Energy.  I agree with most of
 what you say and think that others would be wise to consider
 your thoughts serously.

 Yesterday, I put out a message without my signiature
 indicating that at least some of the Feds are keenly aware
 of the various gimmics being used to funnel limited research
 dollars into non-research functions, and are not generally
 sympathetic to those efforts.  I offered the thought that "A
 rose by any other name still has thorns."

 James Beall, Ph.D.
 ER- 72
 U.S. DOE
 Washington, DC  20585

(I'm putting on my bureaucrat hat)

Having previously worked at a Federal agency I find the idea of the
administrative fee troubling.  In terms of Federal agencies, as I
understand it based on my A-21 training, if a cost is in an
institution's indirect cost pool and goes in to calculating the
indirect cost, the cost cannot be charged as a direct cost.
Otherwise you are double dipping, getting money for a cost directly
and indirectly.  I understand the desire to play both sides of the
street when indirect costs are restricted or not provided in order to
recoup as much as possible for the institution, but it sounds
downright deceitful as well as illegal.

Moreover, I can understand wanting to charge an administrative fee
to foundations that don't allow indirect, but don't you think they
will catch on that the administrative fee is really the indirect in
disguise, and a thin one at that?

What's the solution?  Push harder to justify indirect costs to the
Feds, not go around the regs.

(I'm removing my bureaucrat hat now)

Please comment.  I'd like to hear responses or different
interpretations.

Mike

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