Section G.19.pdf

G.19 INDIRECT COSTS

Indirect cost rates under this contract at the time of award are as follows:

Indirect Cost

Base of Allocation

Rate for each Contract Year 1 2 3 4 5

G&A

In accordance with contractor’s negotiated and approved Indirect Cost Rate Agreement, also excluding CRA, equipment, and

CTST.

Overhead Applicable Not Applicable

Total Direct Salaries and Wages (including/excluding fringe benefits)

Indirect Ceiling Rates or Ceiling Amounts - The Contracting Officer will impose the contractor’s general & administrative cost limitation (G&A ceiling) regarding the contract based on the documentation received. Please note that these “ceilings” do not exclude your organization from the responsibility of annually submitting an indirect cost rate proposal to the contractor’s Cognizant Agency of the Federal Government to establish the final, approved indirect cost rate(s). These terms and conditions in the cost principles below are applicable to all awardees receiving funds from multiple sources. Organizations receiving funds from only one source do not need an indirect cost rate (ICR) approved.

The contractor’s G&A ceiling rate is ___%.

You are governed by one of the categories of cost principles listed below. Please comply with your cost principles as appropriate to your organization:

(1) Private-for-Profit organizations - Federal Acquisition Regulation (FAR) Subparts 31 and 42.

(2) State and local governments and Indian Tribal governments - OMB Circular A-87.

(3) Educational Institutions - OMB Circulars A-21 and FAR 42.705-3.

(4) Nonprofit organizations - OMB Circular A-122.

In order to avoid major audit problems, disallowed costs, and to receive timely reimbursement of indirect costs, contractors should take those necessary steps to comply with the clause 52.242-4, Certification of Final Indirect Costs, as well as the critical timeframes for submission of indirect cost proposals.

Note that the contractor must obtain approval from the Contracting Officer to reallocate planned expenses from direct cost budget line items to the indirect cost budget line item to accommodate higher approved indirect cost rates

Support for Indirect Cost Claims

A copy of the indirect cost rate negotiation agreement will be requested to verify the rate information (rate approved, type of indirect cost rate(s) approved, and allocation base) received from the Federal cognizant agency (Federal agency providing the preponderance of direct federal funds to the organization).

For billing purposes, indirect costs shall be calculated using the approved provisional rate, until a final rate is established and retroactively applied. In the absence of an approved provisional rate, a negotiated/proposed rate shall be used.

Temporary Billing Rate (TBR) – For those contractors that do not have a federally approved indirect cost rate, the Contracting Officer may negotiates a (TBR) to allow initial indirect cost claims for the first 90 days of award.

During these 90 days, the offeror must submit an acceptable indirect cost proposal to your Federal cognizant agency to obtain a provisional indirect rate. Failure on your part to submit an indirect cost proposal within this 90 day period means that you shall not receive further reimbursement for your billing rate. Also, action may be taken to recoup all indirect costs already paid to you.

It is important to point out that all organizations are to submit a final indirect cost proposal to its Federal Cognizant agency annually and within 180 days after the end of the organization’s fiscal year.

If DOL is your Federal cognizant agency, proposals shall be sent to:

Chief, Division of Cost Determination (DCD) U.S. Department of Labor, OASAM 200 Constitution Avenue, N.W., Room S-1510 Washington, D.C. 20210 Tel. (202) 693-4100 Lopez.Victor@dol.gov mailto:Lopez.Victor@dol.gov