Federal spending for scientific research at U.S. academic institutions equals approximately $15 billion each year. According to the analysis in this report, about three-quarters of this amount supports the direct costs of conducting research. The other one-quarter covers facilities and administrstive (F&A;) costs. F&A; costs encompass spending on such items as maintenance and renewal, libraries, and the salaries of departmental and central office staff. The research partnership between the federal government and universities is widely praised for its contributions to the public welfare. The costs shared by each participant in the system are subject to policy debate and negotiation. This report provides up-to-date quantitative and qualitative