[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1184 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1184

     To limit the amount of indirect costs that may be incurred in 
 conducting federally sponsored university research and development to 
50 percent of the modified total direct costs related to such research 
                            and development.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 30, 1993

 Mr. Brown (for himself, Mr. Grassley, and Mr. Nickles) introduced the 
 following bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
     To limit the amount of indirect costs that may be incurred in 
 conducting federally sponsored university research and development to 
50 percent of the modified total direct costs related to such research 
                            and development.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION ON INDIRECT COSTS INCURRED IN FEDERALLY SPONSORED 
              RESEARCH.

    (a) Limitation.--Notwithstanding any other provision of law, on and 
after the date of the enactment of this Act, each head of a Federal 
agency making a grant to, or entering into a contract with, an 
institution of higher education for research and development, shall 
condition such grant or contract on a requirement that the institution 
not use such grant or contract funds to pay for those indirect costs 
related to such research and development which exceed the amount equal 
to 50 percent of the modified total direct costs that are incurred by 
such institution for such research and development.
    (b) Definitions.--For the purpose of this section--
            (1) the term ``indirect costs'' means administrative costs 
        and the costs of library and student services, building and 
        equipment, and operations and maintenance;
            (2) the term ``institution of higher education'' has the 
        same meaning given to such term by section 1201(a) of the 
        Higher Education Act of 1965;
            (3) the term ``Federal agency'' means each department, 
        agency or instrumentality of the Federal Government, including 
        an executive agency as defined in section 105 of title 5, 
        United States Code; and
            (4) the term ``modified total direct costs'' means the 
        costs of--
                    (A) salaries and wages;
                    (B) fringe benefits;
                    (C) materials, supplies, services and travel; and
                    (D) awarding a subgrant to, or entering into a 
                subcontract for, not more than $25,000.

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