WE are in the process of considering a move from the short form to the long
form for indirect cost rate negotiation. However, we know practically nothing
about what is involved in gathering information necessary for preparing the
long form. I have been asked by management to provide the following:

 1.      What specific steps are necessary to begin accounting for
separate cost pools, facilities usage, etc.?

 2.      What is the estimated cost of hiring experts in the field to
analyze our systems and assist in setting up the information systems needed?

 3.      What would we need internally, primarily staffing, to implement
and maintain such a system?

 4.      What is a reasonable estimate of the increased IDC recovery as
a result of moving to the long form. Currently our rate is 48% of salaries and
wages and the estimated recovery for FY 1995 is $360,000.

Any comments and advice would be greatly appreciated.

Barry W. Tate, Director
Contract and Grant Administration
Sam Houston State University
Huntsville, TX
xxxxxx@SHSU     (409)294-1091