R&DHow Progress Happens
On Feb. 7, the National Institutes of Health issued a notice, effective Feb. 10, to cap reimbursements for indirect costs (IDC) associated with its grants. The world’s largest public funder of biomedical research, the NIH supports investigations into, among other things, efforts to fight cancer, control infectious disease, understand neurodegenerative disorders, and improve mental health. Harvard’s vice provost for research details crucial role of NIH support in science and medicine.
On Feb. 7, the National Institutes of Health issued a notice, effective Feb. 10, to cap reimbursements for indirect costs (IDC) associated with its grants. The world’s largest public funder of biomedical research, the NIH supports investigations into, among other things, efforts to fight cancer, control infectious disease, understand neurodegenerative disorders, and improve mental health. The agency is a significant sponsor of research at Harvard, with more than 1,500 active grants and $488 million in funding this past year; the new cap would result in a loss of more than $100 million annually for the University.
The move prompted multiple lawsuits to halt implementation of the change: one brought by the attorneys general of 22 states, including Massachusetts; one led by the American Association of Medical Colleges (AAMC); and a third led by the American Association of Universities (AAU), to which Harvard submitted a declaration of support. On Monday, a federal judge granted temporary restraining orders stopping NIH from taking steps to implement or enforce the change pending further orders from the court.
The Gazette discussed indirect costs with John H. Shaw, Harvard’s vice provost for research, who has kept the University community informed on recent changes and filed a declaration outlining Harvard’s position in the AAU case. This interview has been edited for clarity and length.
What are indirect versus direct costs?
Direct costs are costs related to the conduct of the work itself: in some cases, including salaries for those engaged in the project, equipment, travel expenses, and things of that nature. But when you think about the true cost of that work, other things also need to be considered: the building, the infrastructure, the labs that our researchers work in, electricity and utilities that support the building, and administrative staff that enables that research and ensures we are compliant with the terms and conditions associated with that research activity.
It is important to emphasize that all of those indirect activities are necessary to support the research activities. Reimbursements for indirect costs from sponsors such as the NIH don’t go into a slush fund for an institution to use as it sees fit. We have an obligation to the sponsor to ensure that those monies are spent to support the research.
