To: IN21437 --POST

 *** Reply to note of 05/08/96 19:34
 From: Norm Meeks
 Subject: Re: Equipment Use Charges on Grants/Contracts

 The first question is to ask is if the equipment has been included in your
 equipment use or depreciation component of your indirect cost rate. If it is,
 that is part of your answer, namely, you are already recovering the cost of thi
 s equipment through the IDC rate. Even if the equipment is in the IDC rate, if
 it is truely a specialized and/or expensive piece of equipment/facility, it may
 fit the definition of a specialized service facility in which case you might
 want to calculate a charge out rate. This assumes that you are on an MTDC base.

 If on   S&W base, you might want to look into a charge out rate regardless.

 Key point is to be consistent: you cannot GENERALLY charge out some equipment
 as a direct charge and some equipment as an indirect charge.  Talk to your
 people who do your IDC rate calculations and pick up a copy of A-21.

 Norm Meeks
 Mayo Foundation
 xxxxxx@mayo.edu