If the fEC shows a loss compared with the funders proposed funding package, should we not accept the contract?
Not necessarily. This situation is no different from at present. For example, analysis shows that historical Research Council funding of research, on the basis of direct costs +46% overhead, pays a smaller proportion of the fEC than will be provided by the new arrangements, on the basis of 80% of the fEC. The fEC methodology allows a more transparent analysis of the full cost and the funding offered by the funder. Other funding sources, including QR funding via the dual support system must be taken into account. Overall, the government expects fEC to lead to the long-term sustainability for university research. The fEC approach will support informed decisions in support of research portfolio management.
