It’s BASIC: We Must Protect our Regional Science and Research Institutions

The Bay Area’s many universities, labs and private research institutions are a never-ending fountainhead of discovery and innovation, spawning an almost constant gusher of new technologies, companies and industries that contribute mightily to our economic vibrancy and competitiveness. Recognizing the critical role our research institutions play in advancing U.S. leadership globally and serving as powerful engines of economic activity, the federal government has long made big investments in the work they do in a wide range of fields, from information technology, healthcare and defense to communications, space and energy. But that work is now seriously threatened by proposals to dramatically curtail federal investments in basic research.

Alarmed by these plans and the immediate harmful impact they would have on our region’s research capacity and scientific output, the Bay Area Science and Innovation Consortium (BASIC) is urging Congressional leaders to halt any reductions in federal grant funding and engage in discussions on new models for ensuring greater transparency and accountability in how federal dollars are used.

The Bay Area Council formed BASIC to facilitate collaboration among major organizations in the Bay Area’s scientific research community and address key issues and opportunities impacting the region’s research base and its ability to support technology-led growth. Chaired by Jeffrey Welser, Chief Operating Officer of IBM Research, BASIC is led by a Board composed of top research leaders at our region’s universities and national laboratories, plus chief technology officers and lab directors at many of our leading technology companies. It is the voice of our region’s science and research community.

At issue is the level of indirect cost recovery rates in federal research grants. Beyond funding for direct research, indirect costs are those associated with operating and maintaining research facilities and laboratories, including everything from administrative support, utilities, and equipment to janitorial services and security. The research doesn’t happen without these indirect costs, but a blanket 15% cap the federal government has proposed on indirect costs would erase billions in funding and effectively hobble scientific research on everything from life-saving medicines to new clean energy sources.

In a letter to Congressional and White House leaders, BASIC Chairman Welser acknowledges the need for reforms in how indirect costs are handled and conveys support for a widely accepted model known as the Financial Accountability in Research (FAIR).

“The FAIR model offers a fair and balanced approach to this issue that can increase the efficiency and transparency of grantmaking while ensuring that our nation’s leadership in science and technology is not impaired. Under its framework institutions would be required to report the use of reimbursed funds in new trackable costing categories. In contrast to a blanket approach, it would be customizable to specific kinds of research projects,” the letter states.

BASIC and the Bay Area Council are continuing our advocacy to protect and strengthen our region’s incredible research and scientific community. To engage in our BASIC work, please contact Senior Director Sean Randolph.