Yes, this seems like a big problem. Need to reform the NIH and crack down on the universities. >On the other hand, there is definitely evidence that universit

Yes, this seems like a big problem. Need to reform the NIH and crack down on the universities. >On the other hand, there is definitely evidence that university administrators are motivated by indirect cost rates. In the most severe cases, some universities levy a “tax” on researchers for obtaining grants from non-NIH sources. In the case of Columbia University, the tax is equal to the NIH indirect cost rate minus the other institution’s indirect cost rate. That percentage is taken out of the researcher’s direct costs. This policy dramatically diminishes the value of non-NIH grants. >For example, if a Columbia University (62.5% NIH indirect cost rate) researcher receives a grant from the Bill and Melinda Gates Foundation (10% indirect rate), with a direct cost of $1 million and a total value of $1.1 million, a whopping $525,000 intended for the researcher is redirected to the university, bringing the direct cost benefits to the researcher down from $1 million to $475,000. And frankly, that’s underselling the transfer, because non-profit grants tend to be much smaller than NIH grants; once the tax is paid, the remaining money might not even be worth applying for.