I am more than surprised that an institution receiving federal money
would consider a sliding scale for indirect costs for non-federal
sponsors - especially for-profit entities.  Bill Campbell  said it
nicely about it casting some doubt on the accuracy of your federal
rate by establishing a slilding scale - I would state this much more
strongly.

We accept the documented rate for overhead from any agency -
voluntary health, foundation, etc.  If no rate is specified, we
apply 50% to the direct costs.  (Our federal rate is 54%.)
As this relates to corporate funding, this has been a particularly
hot issue in recent years with the feds - and we are extremely consistent in
 applying the 50% to corporate awards.  Our tech management office makes
 it a point to negotiate for a bottom line of funding from
corporations stating that our 50% rate will be applied- so if
you  can't get enough money to cover your standard rate from corporate,
maybe there is a problem with the negotiations.

Date:          Tue, 26 Dec 1995 14:21:10 -0500
Reply-to:      Research Administration Discussion Group
 <xxxxxx@health.state.ny.us>
From:          Robin Forester <xxxxxx@BIH.HARVARD.EDU>
Organization:  Beth Israel Hospital Boston MA
Subject:       Indirect Cost Policy for non-federal funding sources
X-To:          Research Administration Discussion Group
 <xxxxxx@albnydh2.health.state.ny.us>
To:            Multiple recipients of list RESADM-L
 <xxxxxx@health.state.ny.us>

Does any institution have in place a policy for deciding what percentage
of direct costs to use for indirect costs on funding that doesn't specify
what the particular agencies indirect cost rate is.
 For example, if a drug company was going to give 1 million
dollars in direct costs for basic research, how does your institution decide
what percent to use for indirect costs.  Would the rate vary depending on
how much money was being given?
 We are thinking of developing a "sliding
scale" for indirect costs. If a company was giving less than 1 million
dollars, we would take 30% for indirect costs. If the company was giving
more than 1 million, we would take 20% for IDC, etc.  The main idea would
be to reduce the IDC rate taken as the amount of DC increases.
 All responses and ideas would be appreciated.  I have looked at various
institutions' Policy Manuals and haven't been very successful in locating
this information.

Robin Forester
Research Grants Coordinator
Office of Research Administration
Beth Israel Hospital
330 Brookline Avenue
Boston, MA 02215