Jack is correct. However, if the piece of equipment in consideration either
is new or was excluded from the calculation of your current indirect cost
rate, then you may have a case to set up a specialized service facility to
recharge the usage of this special equipment (provided that there is enough
service demand for it). Louis.

-------
Jack's comment:
>At 09:27 AM 12/6/95 PST, you wrote:
>Your overhead rate should have equipment use charges built into it. Some
>institutions have built use charges for specific pieces of equipment, but
>this is exceptional and you should already know about it.
>
>Like mud, not very clear,  but it covers the ground
> ----------
>From: resadm-l
>To: Multiple recipients of list RESADM-L
>Subject: Equipment Use Charges on Grants/Contracts
>Date: Tuesday, December 05, 1995 1:55PM
>
>I need advice on how and when to charge for the use of specialized
>equipment on a grant or contract.
>
>We have a contract with a private firm in which the professor is
>doing some work that is partly research and partly testing,
>and he is using some failry big and expensive equipment in an
>engineering lab.  There ias adequae provision for salaries,
>overhead, supplies, etc., but no rental or usage charge for
>the equipment.  There is also provision for the university to
>keep any intellectual property that may arise.
>Another professor was asked by another company if they could
>use the machine, and when he calculated and quoted the usage charge
>they turned it down.  He is now upset that the first company
>seems to be getting the usage for free.
>
>Question:  At what point, or by what criteria, should specialized equip-
>ment be a separate charge in a grant or contract budget?  Does
>paying overhead and covering salaries and supporting research
>obviate the need to pay for the equipment?  Are there accounting
>rules that need to be followed consistently?
>
>Any advice will be welcome.
>
>Stuart A. Ross
>California State University Fullerton
>xxxxxx@ccvax.fullerton.edu
>
>Thank you.
>
>
------------------------------
Louis Guin, PhD, Assistant VP
Univ. of Southern California
Office of Financial Analysis
UGB Suite 107, MC-8002
Los Angeles, CA 90089-8002
(P) 213 743-2454
(F) 213 748-0871
(E) xxxxxx@usc.edu