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November 5, 2008    DOL Home > OASAM > Frequently Asked Questions   

Frequently Asked Questions — Cost Determination


Question: How do I get a copy of the Indirect Cost Guide?

Answer: The Indirect Cost Guide is available on the Internet http://www.dol.gov/oasam/programs/boc/costdeterminationguide/main.htm or you may call our office at (202) 693-4100 and we will mail you a hard copy (free of charge).

Question: Who needs an indirect cost rate?

Answer: Any organization with more than one source of funding needs an indirect cost rate.

Question: Why do I need an indirect cost rate?

Answer: Your organization needs an indirect cost rate for: management information to be in compliance with Federal regulations, e.g. OMB Circular A-122, A-87, A-21 or the FAR (whichever applies) and for audit documentation.

Question: What is an indirect cost rate?

Answer: An indirect cost rate is a percentage (indirect cost pool/direct cost base) used to distribute indirect costs to all cost centers benefitting from those costs.

Question: Which agency should approve my indirect cost rate(s) and issue a Negotiation Agreement?

Answer: Your cognizant agency is responsible for negotiating your indirect cost rate and issuing the appropriate Negotiation Agreement. Unless specifically assigned by OMB, the Federal agency with the preponderance of direct funding is normally your cognizant.

Question: How do I get an indirect cost rate?

Answer: Submit a proposal to your cognizant agency. The items required by DOL are listed in our guide book. Other federal agency requirements may differ, contact them directly. Proposals are usually due within 90 days of obtaining a federal contract/grant. After your first provisional rate is established, your final proposal is due six months after the end of your fiscal year.

Question: What is the correct DOL address for submission of an indirect cost proposal?

Answer: The address is determined by the location of your organization's home office. The Division of Cost Determination's Directory provides contact information, including geographic areas of responsibility.



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