While the title of this message is short and sweet, I am certain the issue
I am about to raise is a biggy at many institutions and I hope it will
generate some discussion.

I am interested in policies, models, procedures and or general advice on
addressing faculty concerns and requests for waiver of full costs and
standardized simple agreements when working with small companies who (for
whatever reason) claim they simply cannot afford the university's full
price.

Although I am looking for general guidance and good practices, let me
provide a little background for why this question has come up (this time).
We conduct research and service projects to assist small companies with a
variety of needs, many of which have results proprietary to that company
and their commercial viability.  The University's basic policy is to
recover full costs.  There is plenty of precedent where indirect costs or
faculty salaries were cost shared.  We stick pretty closely to a policy of
not cost sharing with private industry when that industry is sole
beneficiary of the project results, but there are a few exceptions lurking
around in the files.  Our faculty resist the notion that we should not
share in the cost when the company is small and "needy" or when they feel
it is ok for the university to cost share indirect costs.  Additionally,
the comment has been made that if the University is "too expensive" for
these small companies, then the faculty will simply assist them as
consultants and the University loses out on several fronts.

A suggestion was made by a faculty member to provide a dollar threshold
whereby the indirect costs could be waived by the faculty member, dept
head, and/or dean for whatever reasons.  He suggested 10-15 thousand.  From
a financial standpoint, I have a problem with that, but.....

He also suggested that we establish a policy whereby the University could
not enter into another agreement with that company for 1 year after the
termination of the existing agreement to avoid an orginally approved 10-15K
project (where indirect cost was waived per policy) becoming a 40-50K
project where we should have legitimately recoverd indirect costs.

I have heard that North Carolina State might have such a policy for dealing
with this kind of issue.  I am anxious to be consistent with the policies
and procedures of other public insitutions.  Thanks in advance for any info
you might provide.

PS.  I view these activities differently than a clinical trial agreement.
I know there has been a lot of discussion recently about clinical trials
and reduced rates.

----------------------------------------------------------
Martha M. Taylor, Director               (334) 844-4438
Contracts and Grants Administration         FAX (334) 844-5953
307 Samford Hall
Auburn University,  AL  36849-5112
xxxxxx@mail.auburn.edu