The NICRA allows the Grants or Contracting Officer to quickly calculate the appropriate allocation of indirect project costs and calculate these lines for the entire process. A document published to reflect an estimate of the indirect cost rate negotiated between the federal government and the organization of a Grantee/Contractor, which reflects the indirect costs (facilitations and administrative costs) and incidental costs incurred by the organization and which will be the same in all U.S. agencies. DESCRIPTION – An interim rate is an interim rate set for a specified period to allow financing, execution and reporting of indirect costs until a permanent rate is set for that period. DESCRIPTION – A final rate is a permanent rate that is set after the actual costs of an organization for an ongoing year are known. A final rate is used to adjust the alleged indirect costs on the basis of an interim rate. If a Grantee/Contractor already has indirect costs negotiated with the USG. Because it is difficult for a federal agency to determine the indirect costs of completing a program or project. DESCRIPTION – A fixed sentence has the same characteristics as a predefined sentence; However, the difference between the costs used to set the fixed rate and the actual costs incurred during the year covered by the fixed rate is classified as a pre-start. The exposure is used to adjust the current rate to allow the recipient/contractor to recover or repay an overannal recovery in a subsequent year. DESCRIPTION – A pre-defined rate is a permanent rate set for a set future period based on a review of the actual costs of a previous period. These rates are only subject to correction in very unusual circumstances.
www.usaid.gov/data/dataset/21ecfb30-d6a2-4072-acdf-86f5abfeeea5 Office of Management and Budget (OMB) Bulletin A – 122 Section E “Negotiation and Approval of Indirect Cost Rates.” www.dol.gov/oasam/boc/dcd/DCD-2-CFR-Guide.pdf RENEW – If you have any questions or explanations about the content of this infographic, please contact firstname.lastname@example.org (308k) Infographic: NEGOTIATED INDIRECT COST RATE AGREEMENT (NICRA).