I N T E R O F F I C E   M E M O R A N D U M

 Date:     13-Oct-1994 03:28pm EST
 From:     Joe Walker
 JWALKER
 Dept:     Sponsored Funds Administration
 Tel No:

TO:  Remote RSCS/NJE Network User         ( _JNET%xxxxxx@ALBNYDH2.BITNET )

Subject: Indirect costs

It seems that Dr. Scheier raised some fair interest and discussion re
"administrative fees" in lieu of an IDC rate. Let me add my quick cent and a
half.

For the Feds at least, a primary concern is the concept of consistency in
proposing, accumulating, and billing for costs (Shades of Cost Accounting
Standards!).  So to try an administrative fee where one has not been placed in
use and therefore in the IDC rate proposal process is a significant concern.

From what I have been able to discern from the many comments so far is that
folks are wanting to recover some costs in a manner other than the IDC rate
which some federal agencies are either capping or eliminating.

Many foundations and some other sponsors do not pay indirect cost. We want
to know how other universities try to recoup these real costs.

Therefore, I would expect that it would be easier to use an IDC rate and defend
it on the basis of that rate being based upon REAL costs rather than an
administrative fee that is intended to recover some "phantom" costs that are
not recovered/recoverable as real costs.

I might also comment that while A-88 is intended to preclude differing rates
for different agencies, we all know that this has gone by the wayside. BUT,
nonetheless, I would attempt to use the argument that the cognizant agency
(DHHS, DoD, etc.) has  negotiated IDC rates that are INTENDED to apply to all
federal agencies absent specific authority, regulation, etc., to the contrary.

I hope this might add some insight but if someone has a specific question that
they would like to address to me, I would try to help. Use the email address
above, xxxxxx@onrhq.onr.navy.mil, or 614-292-4344

Joe Walker
The Research Foundation of SUNY
Binghamton University
PO Box 6000
Vestal Parkway East
Binghamton, NY 13902

(607) 777-6752
(607) 777-4354 fax

E-Mail xxxxxx@bingvaxa