Approaches to Cost Recovery for Animal Research Implications for Science, Animals, Research Competitiveness and Regulatory Compliance (1998) / Chapter Skim
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Contents of Report
Contents of Report
Pages 1-14
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The revised manual recommends that the costs of an ARF be assigned to three main categories: institutional F&A costs, ARF internal support costs, and ARF internal direct costs. OMB has not accepted that the first category can be assigned to an institution's indirect cost pool; but both OMB and the CARS Committee agree that the second and third categories are to be assigned to the direct cost pool.
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OMB does allow indirect cost recovery for research laboratory space and other space used for research. Thus, if investigators keep their animals in their research laboratories, the heating and other indirect costs are included in the institution's indirect cost rate; but if they keep their animals in a centrally managed facility, the government may ask that all the costs be covered by direct research money.
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costs associated with ARFs can be charged to the indirect cost pool, as is typically done for other research facilities, or must come from direct charges as part of the ARE per diem rates. The CARS committee originally recommended that direct costs of providing ARE services and internal support costs be included in the per diem charges while F&A costs including space, administration, and regulatory compliance costs should be included in the indirect cost pool.
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Brief biographical sketches of the committee members can be found in the appendix. The committee was asked to develop recommendations by which federal agencies and research institutions can establish what cost components of ARFs should be charged to institutions' indirect cost pool and what cost components should be direct costs that are included in per diem charges to investigators and to assess the financial and scientific ramifications that these criteria would have for federally funded institutions.
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. Moreover, The cost of each service normally consists of both its direct costs and its allocable share of F&A costs" (section I.44.b)
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There -are obvious substantial benefits to consolidation of animal facilities: economies of scale, elimination of equipment redundancies, efficient use of space, improved facility security, enhanced personnel health and safety, lower cost of regulatory compliance, and ease of maintaining accreditation through peer review by AAALAC. The federal government also realizes financial savings through the existence of centralized ARFs in another manner: these facilities can support the disparate and unique research needs of several disciplines.
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On the basis of its review of per diem charges at selected universities before and after ARF costs were fully loaded into per diem charges, the committee believes that full loading of all ARF costs into per diem rates results in roughly doubling the per diem charges. The likely substantial increase in per diem charges would require that federalagency program managers revise their expectations regarding amounts of direct costs for animal use in an average grant.
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This encourages researchers to keep animals dispersed in other research areas, whose costs are included in institutional F&A cost rates, and thus avoid incurring the per diem costs for centralized facilities. The dispersion of animal facilities in this mariner leads to inefficient use of space and labor arid, hence, is associated with increased costs beyond the sum of the direct and indirect costs (Pounds 1996~.
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Internal support costs, such as internal ARF administration, animal health Institutional F&A costs, including space costs, general institutional administration, and costs of regulatory compliance. The CARS Manual committee originally concluded that per diem rates should include the first two categories~he direct costs of providing services and the internal support costs.
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Recommendations for animal care are found in the Guide for the Care and Use of Laboratory Animals, and recommendations for occupational health and safety are given in a companion document titled Occupational Health and Safety in the Care and Use of Research Animals (NRC 19971. OTHER CONSIDERATIONS The ostensible reason for the presumption that ARFs should be included in the definition of "specialized service facilities" in Circular section ]
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The committee recommends that the total F&A costs of an ARF be recovered from the indirect cost pool in the same way as the cost of other laboratory research space. The committee will next analyze the cost components of ARFs at selected institutions to identify major cost items and recommend methods for containing or reducing those costs.
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Institute for Laboratory Animal Research Committee on Occupational Safety and Health in Research Animal Facilities.
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She was also on the Board of Directors of the Council on Government Relations and was a member of the NRC committee that wrote the report on Nutrient Requirements of Laboratory Animals, fourth edition.
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His research areas are environmental control of reproduction, the endocrine basis of behavior, and rodent and primate behavior. He was a member of the committee to revise the Guide for the Care and Use of Laboratory Animals and has been on review panels for NSF and NTH.
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