[Federal Register Volume 66, Number 52 (Friday, March 16, 2001)]
[Notices]
[Pages 15275-15277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6561]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Distribution of Fiscal Year 2001 Contract Support Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of method of distribution and use of Fiscal Year 2001 
Contract Support Funds.

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SUMMARY: The purpose of this announcement is to provide instructions to 
Bureau of Indian Affairs (BIA) in carrying out their responsibilities 
when distributing Contract Support Funds (CSF) for contracts awarded 
under Public Law 93-638, as amended. The instructions are not 
regulations to establish program requirements.

DATES: The CSF Needs Report for ongoing/existing contracts and annual 
funding agreements are due on July 15, 2001. The CSF Needs Reports for 
new and expanded contracts and annual funding agreements are due 
periodically throughout the year as the need arises. All new and 
expanded contracts and annual funding agreements starting between 
October 11, 2000 and January

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1, 2001, shall be considered to have a January 1, 2001, start date.

ADDRESSES: Submit the CSF Needs Report to Jim Thomas, Chief, Division 
of Self-Determination Services, Bureau of Indian Affairs, 1849 C 
Street, NW., MS-4660-MIB, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Jim Thomas, (202) 208-5727.

SUPPLEMENTARY INFORMATION: A total of $130,485,000 is available for 
contract support requirements (excluding construction requirements) 
during FY 2001. Congressional language authorizes the use of 
$125,485,000 in FY 2001 to pay costs of ongoing/existing self-
determination and self-governance awards for programs under contract/
compact prior to FY 2001 and $5,000,000 for the Indian Self-
Determination Fund (ISD) to be utilized for new and expanded contracts/
compacts. Each BIA Regional Office and the Office of Self-Governance 
(hereinafter office) has the responsibility for tribes located within 
their respective jurisdiction to work with the tribes in identifying 
new and expanded contracts and annual funding agreements and reporting 
this information to the Division of Self-Determination Services as 
specified in this announcement. CSF shall be added to awards made under 
section 102 and title IV of the Indian Self-Determination and Education 
Assistance Act, as amended. Awards made under the authority of section 
103 (Grants to Tribal Organizations or Tribes) of the Act shall not 
receive CSF.

Basis for Payment of CSF

    The BIA may only pay indirect costs attributable to program funds 
included in the BlA's appropriation. Awards by the BIA with funds 
originating from other agencies which have been transferred to the BIA 
for award under Public Law 93-638 are not eligible for BIA CSF. 
Contract support/indirect costs requirements for these awards must be 
met from within the amounts transferred. (One example would include 
funds transferred to the BIA from the Department of Transportation for 
roads construction.) BIA will utilize tribal indirect cost rates to 
determine the amount of CSF to be paid to contracting tribes and tribal 
organizations and self-governance tribes and tribal consortia. In 
determining legitimate indirect cost requirements, each office shall 
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 office should use the most current rate 
or pending proposal in determining the amount to award. For tribes 
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), awarding officials may negotiate 
reasonable lump sum amounts with these tribes.

Indirect Cost Computation

    The following steps must be followed by BIA personnel when 
computing contract support annual funding requirements:
    (1) Determine total current year program funds;
    (2) Subtract exclusions (See indirect cost agreements). Examples of 
exclusions include capital expenditures and pass through funds (those 
programs requiring minimal administrative effort). Exclude other agency 
appropriations awarded by the BIA (i.e., Roads Construction funds 
transferred from the Department of Transportation);
    (3) Direct cost base (results of steps 1 and 2);
    (4) Multiply indirect cost rate against base determined in step 3;
    (5) Results of step 4 equals indirect cost amount at 100 percent;
    (6) Multiply current year contract support fund funding percentage 
against step 5; and
    (7) The result of step 6--The amount of current year contract 
support funds to be added to contracts.

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

    Each office will submit a CSF Needs Report to the Central Office 
for ongoing contracts and annual funding agreements by July 15, 2001. 
CSF for Public Law 102-477, contracts and grants awarded under the 
authority of Public Law 93-638, shall be calculated at the Regional 
Offices and reported separately when submitting the July 15, 2001, 
Report. A final distribution of contract support will be made on or 
about July 31, 2001. CSF will be provided to each office from the 
remaining based on these reports. If the need reports indicate that 
$125,485,000 will be insufficient to cover the entire need, the amount 
available shall be distributed pro rata, so that all contractors and 
compactors receive the same percentage share of their reported need.
    Should the amount of CSF provided for these contracts and annual 
funding agreements prove insufficient, contracting tribes may use 
program funds to make up deficiencies necessary to administer their 
contracts. This tribal reprogramming authority is limited to funds from 
their Tribal Priority Allocation (TPA), or annual funding agreement. 
Congressional appropriations prohibits the BIA from reprogramming funds 
from other Bureau programs to meet any CSF shortfalls.
    For other non-TPA programs, tribes may recover full indirect costs 
from within the overall program funds awarded.
    Each office in FY 2001 was provided 85 percent of the total CSF 
amount which was allotted in FY 2000. From this amount each office 
should award 75 percent of required contract support to each contract/
annual funding agreement to meet the criteria established below.
    All contractors and self-governance tribes/consortia with either an 
approved indirect cost rate, current indirect cost proposal, or FY 2001 
approved lump sum amount shall receive 75 percent of the reported need 
to be paid with the first allotment of CSF in FY 2001. After the second 
allotment of CSF is made (approximately July 31, 2001) all contractors 
and self-governance tribes/consortia shall receive a pro rata share of 
CSF.
    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. The assumption of additional BIA program responsibilities 
would be required to trigger a change in designation.

Indian Self-Determination Fund--New and Expanded Contracts/Compacts 
and Start-Up Costs

    Each office shall submit CSF Need Reports to the Central Office, 
Office of Tribal Services, for new and expanded contracts and annual 
funding agreements periodically throughout the year as new contracts or 
annual funding agreements are awarded or existing contracts or annual 
funding agreements are expanded. Funds will be provided to the offices 
as these reports are received and will be taken from the $5,000,000 
appropriated. These funds will be distributed on a first-come, first-
served basis at 100 percent of the need reported.

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    In the event the $5,000,000 is insufficient to meet the reported 
need, new or expanded contracts or annual funding agreements awarded 
after this fund has been exhausted will not be provided CSF during this 
fiscal year. Requests received after this fund has been exhausted will 
be considered first for funding in the following year, if such funds 
are appropriated.
    The Indian Self-Determination Act (Public Law 93-638) defines the 
term Start-Up Cost (Section 106(a)(5)) as follows:
    Subject to paragraph (6) of section 106, during the initial year of 
a self-determination contract, the amount required to be paid under 
paragraph (2) shall include startup costs which are reasonable and are 
incurred on a one-time only basis and are considered necessary to:
    (1) Plan, prepare for, and assume operation of the program, 
function, service, or activity that is the subject of the contract; and
    (2) Ensure compliance with the terms of the contract and prudent 
management.
    For specific guidance, including examples of start-up costs, see 
the BIA website under Tribal Services/Self-Determination Services.

Priority of Funding for New and Expanded Contracts/Annual Funding 
Agreements

    Contract support will be awarded from the ISD fund to all new and 
expanded contracts/annual funding agreements based on the start date of 
the award, and the application date, on a first-come, first-served 
basis. An Indian Self-Determination fund ``applicant roster'' shall be 
maintained, which lists, in order of priority, the name of the tribe or 
tribal organization, the title of the program, the start date, the 
application date, the amount of program funds, the program cost 
code(s), the amount of contract support funds required, and the date of 
approved indirect cost rate agreement or lump sum agreement.
    Start date means the date or commencement of operation of the new 
or expanded portion of the contract or annual funding agreement by a 
tribe, consortium, or tribal organization. However, because the Self-
Determination Act provides that contracts/annual funding agreements 
will be on a calendar year basis unless otherwise provided by the 
tribe, any start date on or prior to January 1 of each year shall be 
considered a January 1 start date.
    The application date shall be the date of the request by the tribe 
which includes:
    (1) A tribal resolution requesting a contract or annual funding 
agreement;
    (2) A summary of the program or portion thereof to be operated by 
the tribe/consortium or tribal organization; and
    (3) A summary identifying the source and amount of program or 
services funds to be contracted or included in an annual funding 
agreement and contract support requirements. In the event that two 
tribes or tribal organizations have the same start date and application 
date, then the next date for determination of priority shall be the 
date the fully complete application was received by the BIA.
    If all of the above are equal, and if funds remaining in the ISD 
fund are not adequate to fill the entire amount of each award's 
contract support requirement, then each will be awarded a proportionate 
share of its requirement and shall remain on the Indian Self-
Determination fund roster in appropriate order of priority for future 
distributions on a first-come, first-served basis, as such funds are 
appropriated.
    A new contract or annual funding agreement is defined as the 
initial transfer of a program, previously operated by the BIA to the 
tribe/consortium or tribal organization.
    An expanded contract or annual funding agreement is defined as a 
contract or annual funding agreement which has become enlarged during 
the current fiscal year through the assumption of additional programs 
previously operated by the BIA.

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

    CSF for ongoing and existing contracts and 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 2000 and continued in FY 2001, 
including contracted or annual funding agreement programs moved to TPA 
in FY 2001.
    (2) Direct program funding increases due to inflation adjustments 
and general budget increases.
    (3) TPA programs started or expanded in FY 2001 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 an 
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 Regional Office. Copies of this decision can be obtained by 
calling the telephone number provided in this announcement.
    (5) CSF will be distributed to the Office of Self-Governance for 
ongoing annual funding agreements, on the same basis as regional 
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 
which were awarded in FY 2000 and are to be awarded in FY 2001 shall be 
considered as ongoing programs.

    Dated: March 12, 2001.
James H. McDivitt,
Deputy Assistant Secretary--Indian Affairs (Management).
[FR Doc. 01-6561 Filed 3-15-01; 8:45 am]
BILLING CODE 4310-02-P