At Lehigh we direct charge lots of equipment (mostly electron microscopes and
related materials testing machines).  To establish a rate we estimate the
number of hours of usage (we charge by the hour in most cases or by the
"run"), the expected maintenance costs (replacement parts, calibrations,
service by manufacturer, etc.) and any technician time needed for routine
maintenance.  Then we divid the costs by the estimated usage and establish a
rate.  At the end of the year, the rate is adjusted (if needed) based on
the actual costs and usage for the next year.  In order to direct charge the
federal government, all users must be charged.

Ruth Tallman
Office of Research and Sponsored Programs
Lehigh University
Phone: 610-758-3024