Indirect Cost Rate Agreement Sample

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. Office of Management and Budget (OMB) Bulletin A – 122 Section E “Negotiation and Approval of Indirect Cost Rates.” RENEW – If you have any questions or explanations about the content of this infographic, please contact (308k) Infographic: NEGOTIATED INDIRECT COST RATE AGREEMENT (NICRA).