DOD Again Blocked From Capping Indirect Research Cost Rates (1)

A group of universities again defeated the US Department of Defense’s 15% cap on indirect cost rates for government-funded research after a federal judge deemed the move arbitrary.

Despite earlier losses in three similar cases, the DOD announced a cap policy “that has consistently been deemed unlawful” without acknowledging its “apparent illegality” and without any attempt to structure the cuts in a legal manner, Judge Brian E. Murphy of the US District Court for the District of Massachusetts held July 18. Murphy issued a preliminary injunction against the cap.

“Despite these successive losses—and despite the benefit of thorough, reasoned decisions ...