Report examines federal research spending

The federal government spends about $15 billion a year on scientific research at U.S. academic institutions. About 75 percent of that amount covers direct costs, such as labor and materials, according to a report requested by the White House Office of Science and Technology and released by the Rand Corporation in July. The remaining 25 percent covers indirect costs, such as facilities and administration.

The White House asked for the study partly because Congress has taken an ongoing interest in indirect research costs, particularly after several incidents in the late 1980s involving alleged overcharges. Rand, an independent research institution, reported that despite concerns that federal outlay on indirect costs has been rising, it has in fact remained steady since 1988. Noting that a lack of data made exact comparisons difficult, Rand said that universities appear to have lower indirect costs than federal laboratories or industrial research laboratories. The report concluded that "many of the costs of facilities and administration derive from requirements in federal, state, and local law," and suggested that examining and possibly streamlining these laws might be an alternative to direct federal reductions in payments for indirect costs.

Copyright American Association of University Professors Nov/Dec 2000
Provided by ProQuest Information and Learning Company. All rights Reserved