Found this fascinating suggestion over at the new blog of the head of the NIH Office of Extramural Research:
Place a diminishing formula of indirect costs on multiple grants (e.g. 100% for the first grant, 50% for the 2nd and 25% for the 3rd). This is by far the most abused aspect of NIH/DOD funding. Everyone knows that 99% of the investigators receiving a second and even a 3rd NIH grant receive little to no additional research space or administrative help. Nor is their usage of utilities exceptionally higher.
...ain't that the truth*.
That is but a snippet so go read the whole exposition typed by one D. Noonan.
*of course the local University is going to argue that their IDC calculation is not really a per-grant or per-direct-cost-dollar calculation but that it includes this notion that some of their labs have more than one grant...