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0 pointsSJC_Hacker1y ago0 comments

Its essentially a subsidy, and been abused for years.

One clarifying point. Indirect is normally charged on top whatever the PI gets. So they don't "take out" 50% the total. They add 50% to the original grant. So if a researcher gets a $500k grant, 50% indirect would be $250k, and the total allocation is $750k.

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rayiner1y ago

That sounds similar to cost plus in the defense sector.

fraggleysun1y ago

It is different. Cost plus allows the contractors to charge for development and add a profit margin.

The corporate equivalent would be a fixed price contract, which has overhead built in and far exceeds university rates.

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rayiner1y ago

That sounds similar to cost plus in the defense sector.

fraggleysun1y ago

It is different. Cost plus allows the contractors to charge for development and add a profit margin.

The corporate equivalent would be a fixed price contract, which has overhead built in and far exceeds university rates.

j / k navigate · click thread line to collapse