Costing

1
Costing Pricing Research Projects

• Dr Karen Steenson
• Administrative Officer, Research Support Unit
• October 2001

2
Research Project Administration Process...

• RPA Forms/Flow Diagram

APPLICATION / TENDER
PROJECT ANALYSIS VARIATION RPA2b
PROJECT APPRAISAL COST/BENEFIT ANALYSIS RPA12
OPEN RESEARCH ACCOUNT RPA5
CONTRACT REVIEW RPA3
3
Cost/Benefit of Research...

• Benefits
• project fee
• long term exploitation
• RAE related income
• academic kudos
• publication rights
• use of results
• access to equipment

• Costs
• project resources
• existing resources
• infrastructure

4
Specific Guidance...

• Research Councils
• All NEW project costs recovered
• Maximal use of ADCs
• e.g. 10-20 of a technician
• Total contribution towards infrastructure (i.e.
  overhead ADCs) in line with Resource Centre
  plans

5
Specific Guidance...

• Charities
• All NEW project costs recovered
• Since 0 overhead - inclusion of existing
  resources
• support staff
• Items normally considered overhead
• expressed as form of direct cost e.g. floor
  space, library
• If no contribution then project should have
  exceptional academic value
• e.g. research contributes to future RAE
  submission and increased HEFCE QR income

6
Specific Guidance...

• Industry, Government Other Negotiable Contracts
• ALL direct project costs recovered
• including PI, research, technical and
  secretarial support staff
• 100 on direct salaries IF limited academic
  value
• e.g. restricted freedom to publish, NO ownership
  of IP, no fundamental research challenge

7
Specific Guidance...

• Industry, Government Other Negotiable Contracts
  continued...
• 70 where longer-term exploitation income
• e.g. via royalties
• Only lower values where exceptional academic
  value and terms conditions similar to Research
  Councils
• where RC finances permit

8
Specific Guidance...

• Industry, Government Other Negotiable Contracts
  continued
• No background IP conceded free of charge
• Use of Standard University Contract
• Where possible use of fixed-price contracts
• quarterly claims in advance

9
Current Best Practice

• Dentistry, Division of Oral Biology
• peer-to-peer interaction a senior academic
  responsible for costing/pricing
• Head of Department willing to turn down work
• group is largely self-funded from a variety of
  sponsors
• group 'knows' their market /10 -15 years
  cultivating contacts
• development of strong negotiating skills
• proportion of the overhead goes to Principal
  Investigator

10
Costing/Pricing Tools...
RACE-2

• Web-based
• HoRCs/HoDs, PIs Administrators can exchange
  reports
• Full project details, with costs for
• Staff Salaries Students Consultants Travel
  Subsistence Equipment Bio-science Other
• Financial summary
• Difference between Institution Cost and that
  Recoverable from Sponsor

11
Support Tools...

• www.campus.leeds.ac.uk/rsu
• E.g. Contracts
• Tips on Research Contract Negotiation
• Research Sponsor Terms Conditions
• Revised Support Letter for Research Council
  Collaborative Projects

12
Why Cost PriceResearch Better?

• To ensure funds available for
• Pump-priming Projects
• Pilot Work - Future Applications
• Junior Staff - Research / Travel
• New Equipment
• New Strategic Studentships