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PREPARED STATEMENT OF Don I. Phillips 

 Executive Director, GUIR Roundtable 

 National Academy of Sciences 

 Page 11 



institutions, and additional geographic areas 



• Provide for review of scientific and technical merit, as 

 well as other appropriate considerations 



• Distribute the costs and risks across all sectors 



• Foster stability and continuity 



For discussion of the many factors that must be considered in 

 implementing these mechanisms, I refer the Subcommittee to the 

 Roundtable reports cited above. 



Indirect costs. The relationship between indirect cost 

 reimbursement and sponsored research activity gives this 

 mechanism special significance for sustaining and renewing the 

 base and for review of scientific and technical merit. Because 

 indirect cost reimbursement is a component of federal financial 

 support for research projects, it flows to institutions in 

 director proportion to the intensity of the sponsored research 

 activities and to their degree of success in the competitive 

 project grant system; that is, institutions most active in 

 federally sponsored research receive the largest amounts of 

 indirect cost reimbursements. Thus, there will be a good match 

 between the institutions with large renewal needs and those with 

 steady inflows of indirect cost reimbursement. 



Under current practice, however, indirect cost reimbursement 

 generally covers less than the full cost of the use of space and. 



