[robwwilliams]

Why obscene? Is rent obscene. Building, supporting, and growing research space does have expenses. And federal grants require much administrative support. Overheads are typically 50% on top of the direct research support-$1 support for every $2 of research effort. Completely reasonable.

[cvwright]

50% was on the low end, 10 years ago when I submitted my first proposal. I’ve been out of the game for a while now, but I don’t think the rates have gone down.

[Fomite]

My kingdom for someone, someday sitting down and figuring out what the average corporation's overhead rate would be if they had to account for it like universities. Because as much as it seems high, there's no real comparison, because no sane company would accept an accounting scheme where their internet connections, phone lines, lights and heat, administrative assistants, copy paper, building maintenance, etc. couldn't be included as part of the cost of doing business, but had to be shuffled to some other category.

In my experience, when universities are allowed to submit straightforward total cost bids for things like contracts, we're often fairly competitive with private industry.

[robwwilliams]

They actually have gone down. Feds have tightened up. I would guess the national average is about 52% and at that overhead rate university do lose money!

Here is old news that the HN community needs to catch up on.

https://www.science.org/content/article/nih-plan-reduce-over...