OSTP Research Business Models Workshop

Chapel Hill, NC, November 17, 2003

*Appropriate Costs of the Research Enterprise ---*

*Determination, Recovery and Accountability*

Comments from the UNIVERSITY OF IDAHO

Charles R. Hatch, Vice President for Research

Steven Daley-Laursen, Dean, College of Natural Resources (attending)

Judith Totman Parrish, Dean, College of Science

David Thompson, Dean, College of Engineering

Rick Schumaker, Project Administrator, EPSCoR

[Principles of the Partnership]{.underline}:

-   Partnerships can be corrupted by a shift away from investments in
    science and research and toward the purchasing and procurement of
    specific, tangible products. This shift can interrupt and corrupt
    the tried-and-true scientific method, stifle creativity in the
    research community and act as a deterrent to involvement by
    scientists who feel demoralized by the process. Commonly this happen
    in more "local" RFP processes directly influenced by political and
    corporate agendas. When it occurs, ironically it diminishes the
    long-term financial stability of research institutions.

-   A defined set of principles and procedures that achieve a true
    partnership between granting agencies and research institutions are
    needed. Actions are often taken unilaterally by granting agencies
    without regard for the sustainability of scientific institutions. We
    need to move toward one of two possible management models: a broad
    consultation arrangement where the agencies operate under guidance
    and recommendations of an advisory/steering committee that is the
    keeper of principles, or a true partnership arrangement where the
    agencies and grantee institutions jointly manage and govern the
    process.

-   Smaller institutions often have special challenges that should be
    addressed in principles. Cost-shifting creates disadvantages for
    smaller institutions that have proportionately less unrestricted
    resources to cover cost sharing on the purchase of equipment,
    building of facilities and augmentation of research assistantships.
    Even hiring decisions can be affected by unrealistic cost sharing
    requirements.

[Accountability / Demonstrating Results and Uses of
Products:]{.underline}

-   Accountability should be defined in terms of scientific outcomes,
    not just financial and administrative compliance. Allow PIs to
    report on outcomes and impacts, rather than just inputs and outputs.
    Encourage PIs to produce scientific publications as well as reports
    on the application of products derived from scientific inquiry.

-   Reduce or eliminate multiple and overlapping agency audit
    requirements.

[Inconsistency of Policies and Practices:]{.underline}

-   Agencies have implemented conflict of interest and misconduct/ethics
    policies that are not entirely consistent. There should be a set of
    policies consistent across government agencies.

-   The principle of full cost reimbursement is vital for partnerships
    to be successful.

-   Making awards sensitive, but unclassified is problematic.

[Promoting Multi-disciplinary and Inter-disciplinary
Programs]{.underline}:

-   Adequately fund interdisciplinary, team activity. Acknowledge that
    team efforts and interdisciplinary work are more expensive (require
    higher inputs), but that they are justified by higher order outputs
    and impacts.

-   Improve interdisciplinary peer review oversight, extend its use more
    broadly, and coordinate inter-agency communication on project
    funding.

-   Eliminate artificial distinctions between research, education,
    outreach and public service. Integration of functions results in
    more powerful outcomes and impacts and ought to be explicitly
    invited and rewarded.

-   Government funding agencies do not foster interagency or
    agency-university research. This is especially true for agencies
    that have funding authority and their own research functions.

-   Congress often raids agency budgets by earmarks to universities.
    This does not foster cooperative relations between research entities
    and generates costly competition between institutions. Provide
    models and incentives for joint research agendas by universities,
    agencies and national labs.

[Balanced Funding:]{.underline}

-   The proportion of total US GNP in support of research has declined.
    The balance of investment between defense, health and
    biological/physical/ecological sciences needs to be evaluated.
    Determine the portion of total research funding that should be
    obligated to each federal agency. Develop policies that will insure
    the competitive allocation of funds to priority research initiatives
    within each agency.

[Use of Information Technology:]{.underline}

-   RFPs, reporting of expense balances, reporting of procedures, and
    notifications of awards are issued in a variety of electronic and
    hard copy formats without standard formatting or terminology.
    Provide a standard template/interface/portals and database. Agencies
    claim they cannot overcome their differences, yet they insist on
    conformity among institutions responding to their RFPs.

-   Information technology should allow us to have research program
    managers for agencies located out around the country rather than
    just in central offices in WDC. This might result in better
    partnering relationships and better review processes.

[Research Infrastructure and Support Systems, and Indirect Cost
Recovery:]{.underline}

-   Administrative caps on salary, stipends and tuition costs often
    shift legitimate research costs to awardees. This is particularly
    true in smaller institutions.

-   Administrative costs at universities are not adequately funded. As a
    result, faculty members spend time on administrative tasks when
    others could do these tasks better and at a lower salary.
    Universities need help with administrative costs -- both in
    additional funding and in helping to reduce those costs.
    Administrative costs can be reduced by having more consistent
    policies and practices across agencies and by eliminating
    unnecessary tasks.

-   Formulate more incentives for infrastructure requests that support
    multi-disciplinary research. Foster more cross-disciplinary support
    for special facilities, lab buildings and certain types of shared
    equipment (e.g., mass spectrometers). It is increasingly difficult
    to secure funding for high quality laboratory staff that run
    equipment in multidisciplinary research facilities. Funding of core
    facilities and their technical support personnel is a critical
    needed infrastructure component given the increased specialization
    in scientific equipment.

-   Set higher allowable indirect cost recovery rates and be consistent
    with indirect cost recovery guidelines across agencies and RFPs.
    Institutions must recover more indirect costs to pay for the rising
    costs in: a-maintenance of current operations including specialized
    scientific equipment depreciation and library electronic databases,
    b-health benefits, c-insurance premiums, d-management of
    collaborative research programs, e-grants and contracts staff needed
    to manage increasing forms of compliance (e.g.. hazardous chemical
    tracking, management of paperwork for foreign workers), etc.

-   Academic institutions have assumed the predominant burden for
    construction of new facilities. The federal government should create
    incentives for state and private organizations to partner with it to
    construct new facilities on university campuses.

[Technology Transfer]{.underline}:

-   Acknowledge that iterative processes between researcher and
    potential end user are more expensive in time and effort, but result
    in higher levels of ownership and utility for final research and
    development products. Adequately fund integrated research and
    outreach activity when proposed.

-   Reaffirm Bayh-Dole technical transfer principles and minimize agency
    specific limitations of rights.

-   Promote exchange of tools among investigators while protecting
    proprietary rights.