I don't believe that DOGE even believes that 15 percent across the board is a legitimate basis for overhead calculations. Mostly just a shot across the bow with the goal to lower costs. On the other hand, engineering contracts with State DOT and perhaps some Fed agencies have legislated burden limits (Been away from the business for quite some time now and forget the details.). If the Feds impose the 15 percent the universities will simply respond with increased reimbursables. Some research procurements probably go through some version of a competitive negotiation although when you are doing cutting edge work I suspect the contract awards are sole sourced.
All to say that it matters what type of product you are buying and advanced research/engineering doesn't lend itself to the same procurement practices as buying off the shelf software. But what do I know? Musk's SpaceX is sending rockets to Mars and he probably operates on 15 percent with everything including pencils reimbursable.
All to say that it matters what type of product you are buying and advanced research/engineering doesn't lend itself to the same procurement practices as buying off the shelf software. But what do I know? Musk's SpaceX is sending rockets to Mars and he probably operates on 15 percent with everything including pencils reimbursable.