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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We use a local university for some engineering / scientific work.  Work is performed by *cleared* US citizens who are FT faculty or FT research staff — no students involved.  Their overhead is about 55%, meaning we would pay $1.55 per hour if the university pays the employee $1.00 per hour.  That overhead covers benefits, retirement, facilities, Computers, printers, and so on.

If they can do this at 55%, I do not understand why some other non-profit is charging 70%, 80%, or more in overhead.[/quote]

Well for one researchers and faculty at universities have no idea how much their presence contributes to overhead. Frankly neither does the 
University. At 55% your work is being subsidized by other University revenue streams. A faculty member who has job security and other benefits costs far less than a FFRDC employee. [/quote]

I don’t know, but they have different business models and have different missions. Lawrence Livermore National Labs and IDA’s Systems and Analyses Centers are cases in point.  Some develop and build technology. Others so analyses, including in depth cross cutting studies that would be difficult for the government to do.  FFRDCs are repositories of human capital which are there in an on demand way and would be basically impossible for individual government organizations to hold. [/quote]

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