The Boston Globe's website has an interesting article on the
federal government's attempt to better control "indirect costs"
or "overhead payments" as described in the article.  To be
clear, once a researcher is awarded a grant, it is given the awardee's
college or university which administers it.  In addition to the
costs of administration, additional reasonable costs might be
covered (e.g., building costs, utility costs, etc.), and these
two costs (costs for doing the research or "direct costs" and
"indirect costs") is the amount of the total award.  So, if a
researcher at, say, Harvard, is awarded a grant that provides
$100,000 a year for research, the university is given $69,000
for administering it (i.e., 69% in indirect costs).  This is a
very high indirect cost even comparison to schools in Boston
but it turns out that the big research universities systematically
get  larger indirect costs covered than smaller ones.  Of course,
all of the big universities have their own lobbyists in
Washington, D.C. as well as in their state houses while smaller
universities may have to do with less powerful advocates.
For the article, see:
http://www.boston.com/news/nation/2013/03/17/harvard-mit-thwart-effort-cap-overhead-payments/Ridc4YwDfkGlmWfUUJ0snI/story.html

-Mike Palij
New York University
[email protected]


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