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PREPARED STATEMENT OF Don I. Phillips 

 Executive Director, GUIR Roundtable 

 National Academy of Sciences 

 Page 13 



federal facilities financing, a competitive debt service support 



program, was suggested as a way to remove facilities support from 



the politically charged debate about indirect cost rates and to 



more equitably distribute risk of facility investment between the 



federal government and the research performing institutions. The 



principle features would be: 



• Establish a federal competitive program to support 

 facility related debt held by institutions. 



• Provide support for debt over a 20 year period on the 

 condition that the supported space is used continuously 

 for research in federally designated areas of inquiry 

 and that the institution maintains its overall research 

 effort. 



• Require commitment of matching funds as a condition of 

 the debt service awards. 



• Exclude debt service supported by competitive federal 

 programs from calculations of institution's indirect 

 cost rates. 



• Provide government funds for debt service support 

 program either 1) through interest from a trust fund or 

 2) by annual appropriations 



• Criteria for awarding debt service support could target 

 various objectives, e.g., addressing the backlog of 

 facility needs in specific fields, renewing and 



