[Federal Register Volume 64, Number 10 (Friday, January 15, 1999)]
[Notices]
[Pages 2658-2659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-915]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Distribution of Fiscal Year 1999 Contract Support Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of method of distribution and use of Fiscal Year (FY) 
1999 Contract Support Funds (CSF).

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SUMMARY: The purpose of this announcement is to issue the Bureau of 
Indian Affairs (BIA) administrative instructions for the implementation 
of Public Law (Pub. L.) 93-638, as amended. These administrative 
instructions are designed to provide BIA personnel with assistance in 
carrying out their responsibilities when distributing CSF. These 
instructions are not regulations establishing program requirements.

DATES: The CSF Needs Report for ongoing/existing contracts and annual 
funding agreements are due on July 15, 1999.

ADDRESSES: Bureau of Indian Affairs, Division of Self-Determination 
Services, 1849 ``C'' Street, NW., MS-4603-MIB, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Jim Thomas, Chief, Division of Self-
Determination Services, Telephone (202) 208-5727.

SUPPLEMENTARY INFORMATION: A total of $114,871,000 is available in the 
Operation of Indian Programs (OIP) amount for contract support 
requirements (excluding construction requirements) during FY 1999. 
Congressional language authorizes the use of the total amount of CSF 
($114,871,000) available in FY 1999 to pay costs of ongoing/existing 
self-determination and self-governance awards for programs under 
contract/compact prior to FY 1999. Congressional language prohibits the 
BIA from entering into any new or expanded self-determination 
contracts, grants, or self-governance compacts after October 21, 1998, 
through the end of FY 1999. CSF shall be added to awards made under 
Sec. 102 and Title IV of the Indian Self-Determination and Education 
Assistance Act, as amended. Awards made under the authority of Sec. 103 
of this Act shall not receive CSF to meet indirect costs.

Basis for Payment of CSF

    The BIA may only pay indirect costs attributable to programs 
included in the BIA's Pub. L. 93-638 awards.
    BIA will utilize tribal indirect cost rates to determine the amount 
of CSF to be paid to eligible contracting tribes and tribal 
organizations and eligible self-governance tribes and tribal consortia. 
In determining legitimate indirect cost requirements, each area and 
self-governance director should fund only those contracting or 
compacting tribal organizations that have an approved indirect cost 
rate or indirect cost proposal currently under consideration by the 
Office of Inspector General. In those instances where a tribe or tribal 
organization has more than one approved rate or a current proposal 
under consideration by the Office of the Inspector General, the 
director should use the most current rate or pending proposals in 
determining the amount to award. For those tribes who are unable to 
negotiate an indirect cost rate because of circumstances beyond their 
control (i.e., which do not have the administrative capability to 
negotiate a rate), area contract officers may negotiate reasonable lump 
sum amounts with these tribes.

Ongoing/Existing Contracts/Annual Funding Agreements--Method of 
Distribution

    Each area office will submit a CSF Needs Report to the Central 
Office for ongoing contracts and annual funding agreements by July 15, 
1999. A final distribution of contract support will be made on or about 
July 31, 1999. CSF will be provided to each area office from the 
remaining funds available based on these reports. If these reports 
indicate that $114,871,000 will not be sufficient to cover the entire 
need, this amount will be distributed pro rata, so that all contractors 
and compactors receive the same percentage of their reported need.
    Should the amount provided for these existing contracts and annual 
funding agreements prove insufficient, a tribe or group of tribes may 
wish to reprogram funds to make up deficiencies necessary to recover 
full indirect costs. This tribal reprogramming authority is limited to 
funds from within their Tribal Priority Allocation (TPA), or annual 
funding agreement. Congressional appropriation's language does not 
provide authority for the BIA to reprogram funds from other BIA 
programs to meet any CSF shortfalls.
    For accounts other than OIP, tribes are not constrained from 
recovering full indirect costs from within the overall

[[Page 2659]]

program and contract support funds awarded for each contracted program.
    Each office has been suballotted funds equal to 85 percent of the 
total amount provided in FY 1998. From this amount each office should 
award 70 percent of required contract support to each contract/annual 
funding agreement meeting the criteria established below. The amount of 
70 percent is authorized at this time to ensure that all tribes receive 
the same level of funding should the appropriations be insufficient to 
pay full indirect costs.
    All contractors and self-governance tribes/consortia with either an 
approved indirect cost rate, current indirect cost proposal, or FY 1999 
approved lump sum amount is eligible for 70 percent of the appropriate 
total amount to be paid with the first allotment of CSF in FY 1999. 
After the second allotment of CSF is made (approximately July 31, 1999) 
all contractors and self-governance tribes/consortia should again 
receive their pro rata share of CSF, based on the amount provided at 
that time.
    An ongoing/existing contract or annual funding agreement is defined 
as a BIA program operated by the tribal contractor or compactor on an 
ongoing basis which has been entered into prior to the current fiscal 
year. An increase or decrease in the level of funding from year to year 
for such contracts or annual funding agreements would not affect the 
designation of such contracts or annual funding agreements as being 
ongoing. An assumption of additional BIA program responsibilities would 
be required to trigger a change in designation and is prohibited during 
this fiscal year in accordance with the following language:

    Sec. 328. Notwithstanding any other provision of law, none of 
the funds in this Act may be used to enter into any new or expanded 
self-determination contract or grant or self-governance compact 
pursuant to the Indian Self-Determination Act of 1975, as amended, 
for any activities not previously covered by such contracts, 
compacts or grants. Nothing in this section precludes the 
continuation of those specific activities for which self-
determination and self-governance contracts and grants currently 
exist or the renewal of contracts, compacts and grants for those 
activities; implementation of section 325 of Public Law 105-83 (111 
Stat. 1597); or compliance with 25 U.S.C. 2005.

Criteria for Determining CSF Need for Ongoing/Existing Contracts/
Annual Funding Agreements

    CSF for ongoing and existing contracts/annual funding agreements 
will be determined using the following criteria:
    1. All TPA contracted programs or those programs included in annual 
funding agreements in FY 1998 and continued in FY 1999, including 
contracted or annual funding agreement programs moved to TPA in FY 
1999, such as New Tribes, Housing Improvement Program, and Road 
Maintenance.
    2. Direct program funding increases due to inflation adjustments 
and general budget increases.
    3. TPA programs started or expanded in FY 1999 that are a result of 
a change in priorities from other already contracted/annual funding 
agreement programs.
    4. CSF differentials associated with tribally-operated schools that 
receive indirect costs through the application of the administrative 
cost grant formula. These differentials are to be calculated in 
accordance with the criteria prescribed in the Choctaw decision dated 
September 18, 1992, issued by the Contracting Officer, Eastern Area 
Office. Copies of this decision can be obtained by calling the 
telephone number provided in this announcement. Tribes that received 
differential funding under this category in FY 1998 are eligible to 
receive funding from this account in FY 1999. Tribes that did not 
receive differential funding under this category in FY 1998 would not 
be eligible for funding in FY 1999 due to the Congressional language 
prohibiting new and expanded contracts in FY 1999.
    5. CSF will be distributed to the Office of Self-Governance for 
ongoing annual funding agreements, on the same basis as area offices.
    6. Funds available for Indian Child Welfare Act (ICWA) programs or 
reprogrammed from ICWA to other programs will be considered ongoing for 
the purposes of payment of contract support costs.
    7. The use of CSF to pay prior year shortfalls is not authorized.
    8. Programs funded from sources other than those listed above that 
were awarded in FY 1998 and are to be awarded in FY 1999 is considered 
as ongoing.

    Dated: December 21, 1998.
Kevin Gover,
Assistant Secretary--Indian Affairs.
[FR Doc. 99-915 Filed 1-14-99; 8:45 am]
BILLING CODE 4310-02-P