Fight Over Indirect Research Costs Looming in US. (August 3, 2007)

    Currently the US Department of Defense in awarding basic research grants to research universities allocates US$1.5 billion for overhead costs which amounts to between 45% - 55% in addition to the grant per se. The money is for legitimate costs associated with supporting research, e.g. electricity, plant upkeep, etc.

Now a report attached to the 2008 defence appropriations bill recommends a 20% cap because overhead costs have "grown to unwarranted levels".

Robert Berdahl, president of the Association of American Universities in Washington, DC disputes the report's contention saying the average indirect cost recovery rate has remained at about 51% for the past decade despite the rising cost of supporting research. Were the proposed cut to become law the AAU president says it could force schools to forgo DOD grants.