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Indirect Costs
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The Office of Management and Budget (OMB) has established a policy whereby a single federal agency
is responsible for the review, negotiation, and approval of indirect cost rates for use on federal financial assistance programs.
Normally, the federal agency providing the predominant amount of direct funding is the cognizant agency.
State agencies, non-profits, and for profit organizations for which the Department of Commerce (DOC) is the cognizant or has oversight are required to
submit their indirect cost proposals to DOC for negotiation. Units for local government, such as the econimic development districts, are not
required to submit their indirect cost proposals unless specifically instructed in a special award condition.
DOC has authorized the Department of Health and Human Services to negotiate indirect cost rates and review cost allocation plans on
behalf of DOC for state agencies and non-profits. The methodology and principles used in pooling indirect costs and establishing a common base for distributing
these costs to ensure that each federal, state, and local program bears its fair share will be reviewed. Only fixed rates with carry forward provision will be negotiated. For
additional information on Indirect Cost, click here.
Point of Contact: | 202 482-1370 |
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