Overhead rate issue continues to churn

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Abstract

Recent actions and statements by Congress and the White House make it clear that the controversy over university indirect cost rates, first raised by Rep. John D. Dingell (D-Mich.) almost one year ago, will not be resolved in the near future.

On January 29, the same day that the president's 1993 budget was released, Rep. Dingell convened a third hearing of his Subcommittee on Oversight and Investigations. Dingell opened the proceedings by stating that a “fair amount has been accomplished,” but continued that the Defense Contract Audit Agency (DCAA) has started audits at almost all of 38 major research universities. Dingell spoke of “stunning findings” from these audits and said that DCAA is now initiating audits at non-profit research institutions, such as the National Academy of Sciences. “These audits have also discovered serious overcharging,” he said.

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