See my <<<<<responses>>>>> to your questions below.

Len Paplauskas
Asst. VP for Research
UCONN Health Center
Farmington, CT   06030
 ----------
From: Research Administration Discuss
To: Multiple recipients of list RES
Subject: Policy regarding IC reductions
Date: Monday, May 20, 1996 3:05PM

We are implementing a new incentive plan for research whereby a fixed
percent
of indirect cost recovery (and other variables) are returned to the
investigators.  Through this discussion a few questions have surfaced and I
am
sharing them with the listserve participants in the hope of receiving some
insight into how others are treating similiar situations.

The first of two questions:
 What policy does your institution have with respect to an
 investigator's request to reduce an audited indirect cost rate
 in order to meet the budget parameter of a perspective sponsor?

 All too often we hear the PI say:"My budget is already bare-bones.
 The only place I can cut is the indirect cost rate."

<<<<<At UCHC, we do not waive or reduce IDC on federal (which is what I
assume you mean by "audited" IDC rate) awards.  At times, if sufficient
programmatic justification is presented, the HC will "rebate" IDC to the
investigator.  In essence, we make a decision to provide the investigator
with institutional funds, which come from the fund created by IDC recovery.
 The programmatic justification must show that the specific grant funded
program is important to the strategic goals of one of our two schools
(Medicine and Dentistry), and must be supported by the Dean of the
respective School.  By "supported", I mean that the Dean's Office must agree
to "pay" for 50% of the rebate by a concomitant reduction in annual
allocation from the IDC income fund.>>>>>

Second question involves "liaison" or industrial work:
 What policy does your institution have with respect to managing
 the interactions between faculty (research centers and institutes) and
 industrial concerns?  Specifically I would like to know if there
 are institutions charging different indirect cost rates for sponsored
 research funded by public companies vs. "purchase of service" type work
 performed for public companies.

<<<<<At UCHC all work sponsored by private industry is charged a 26% IDC
rate.>>>>>

 We have in place larger centers/institutes that charge  "liaison
 membership" fee to companies that benefit from the collaborative efforts
 of a center.  In addition specific "liaison projects" are sometimes an
 offshoot of this membership and are funded separately - since the work
is
 often very specific and unique to the company.  Often the PI will ask
for
 a break on the IC since the company is a "paying" liaision member.  What
 if any of you have a policy with respect to such a situation?

Does any of this sound familiar?  If you would like to share your
experiences
please respond either thru the server or directly to me.

Thanks

Tom

Tom Meischeid, Director
Office of Research & Sponsored Programs
Lehigh University
e-mail: xxxxxx@ lehigh.edu
telephone: (610) 758-3021
fax: (610) 758-5994