I agree with both Doug Wilkerson and Charlie on the concepts surrounding IDC
rates.

Historically, non-federal corporate sponsored funding has been to support
limited research efforts, which is another way of saying that the indirect
cost charged was a function of the service performed and all the
requirements of reporting, etc., i.e. if it did not require all of the
reporting, etc., then it should not be charged at the same (federal) rate
which requires the most comprehensive and  extensive use, monitoring,
reporting,    etc.   of funds.    For example, corporate sponsored clinical
trials are not assessed the full federal rate, but then again should not to
be compared to a fully funded  federal research project.

Charlie makes some good points about the dangers of creating impressions
that Indirect Rates are anything but REAL COSTS that are reimbursed to the
institution for the REAL SERVICES that are provided.     As opportunities
for full non-federally sponsored research increases, it will require an
increased awareness for the sponsor, the investigator(s), and the
institution to compare similar IDC  rates for similar services provided.
 ,,,,,,,,,,gary

Gary P. Naegel
Administrator, Pharmacology
Yale School of Medicine
333 Cedar Street  P.O. 208066
New Haven, CT  06520-8066
(203) 785-4373
(203) 785-7670  FAX
xxxxxx@yale.edu

 ----------
From: Charlie Tardivo
To: Multiple recipients of list RESADM-L
Subject: IDC policy non-fed
Date: Wednesday, December 27, 1995 10:44AM

let me just reaffirm what others are saying and what our philosophy is.  our
institution does not as a policy negotiate downward our indirect cost rate
to a non-federal agency for research programs.  it creates problems on two
fronts, the federal agencies could use this to create some sort of sliding
scale for their funding and it does create the impression with your jown
faculty that the federal negotiated IDC rate is excess revenue and can be
given away as enticements for research funding as opposed to a
reimbursement of REAL COSTS.

I would stay away from policies that would give a better deal to
non-federal agencies.
Charlie Tardivo
Director of Grant Administration and Accounting Operations
Whitehead Institute for Biomedical Research
Cambridge  MA  02142
phone: (617) 258-5107
fax:  (617) 258-6294
e-mail: xxxxxx@wi.mit.edu