The way we do it at Lehigh is open a separate account for a particular piece
of equipment or group of similar equipment.  This account is charged for all
routine maintenance and supplies needed to run the equipment.  An estimated
number of hours of usage is made and then divided into the estimated yearly
maintenance/supplies and/or replacement parts cost to establish an hourly
rate.  After an extended period, the rate is evaluated and adjusted to try to
bring the account close to zero at the end of the fiscal year.  In this way,
the cost of the equipment is charged directly to research accounts.

The trick to these accounts is that the government must pay the lowest rate.
Therefore, you may charge industrial users more money, but you cannot give
usage away, say for educational purposes.  So, if there is use of the
equipment by students as part of course or lab work, then there must be a
mechanism to pay for the use.

This system has been in place for many years and has worked quite well for us.

Ruth Tallman

Office of Research and Sponsored Programs
Lehigh University
526 Brodhead Ave.
Bethlehem, PA  18015
Phone: 610-758-3024
E-Mail: xxxxxx@lehigh.edu