[Federal Register Volume 67, Number 4 (Monday, January 7, 2002)]
[Notices]
[Pages 755-757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-300]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Distribution of Fiscal Year 2002 Contract Support Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of method of distribution and use of FY 2002 contract 
support funds.

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SUMMARY: The purpose of this announcement is to issue the Bureau of 
Indian Affairs (BIA) administrative instructions for implementing 
Public Law 93-638, as amended. These administrative instructions are 
designed to provide BIA personnel with assistance in carrying out their 
responsibilities when distributing Contract Support Funds (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, 2002. 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, 2001 and January 1, 2002, will be considered to have a 
January 1, 2002, start date.

ADDRESSES: Send the CSF Needs Report to Jim Thomas, Bureau of Indian 
Affairs, Division of Self-Determination Services, 1849 C Street, NW., 
MS-4660-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 $133,209,000 is available for 
contract support requirements (excluding construction requirements) 
during FY 2002. Congressional language allows the use of $130,209,000 
in FY 2002 to pay costs of ongoing/existing self-determination and 
self-governance awards for programs under contract/compact before FY 
2002 and $3,000,000 for the Indian Self-Determination Fund (ISD) to be 
used 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 region 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 mentioned in this 
announcement. CSF will 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 section 103 of this Act will 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 Public Law 93-638 awards. 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 CSF 
appropriated to the BIA. 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 use 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 
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 a pending proposal 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), 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 rates against base determined in step 3.
    (5) Results of step 4 equals indirect costs amount at 100 percent.
    (6) Multiply current year CSF funding percentage against step 5.
    (7) The result of step 6--The amount of current year CSF funding to 
be added to contract.

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

    Each office will send CSF Needs Report to the Central Office for 
ongoing contracts and annual funding agreements by July 15, 2002. A 
final determination of contract support will be made on or about July 
31, 2002. If

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these reports show that $130,209,000 will not be enough 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 their Tribal Priority Allocation (TPA), or annual funding 
agreement. Congressional appropriations language does not provide 
authority for the BIA to reprogram funds from other Bureau programs to 
meet any CSF shortfalls.
    For programs other than TPA, tribes are not constrained from 
recovering full indirect costs from within the overall program and 
contract support funds awarded for each program.
    Each office should initially award 65 percent of required contract 
support to each contract/annual funding agreement meeting the criteria 
established below.
    All contractors and self-governance tribes/consortia with either an 
approved indirect cost rate, current indirect cost proposal, or FY 2002 
approved lump sum amount, are immediately eligible to be paid 65 
percent of their need. On approximately July 31, 2002, all contractors 
and self-governance tribes/consortia should receive their pro rata 
share of all remaining 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 before the current fiscal 
year. An increase or decrease in 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 ongoing. An 
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 will send CSF Need Reports to the Central Office 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 $3,000,000. These funds will be 
distributed on a first-come, first-served basis at 100 percent of need 
using the office reports.
    If the $3,000,000 is depleted, new or expanded contracts or annual 
funding agreements awarded after this fund has been exhausted will not 
be provided any CSF during this fiscal year. Requests received after 
this fund has been exhausted will be considered first for funding in 
the following year, from funds appropriated for this purpose.
    The Indian Self-Determination Act defines the term start-up cost 
(Sec. 106(a)(5)) as follows:
    Subject to paragraph (6) of section 106, during the initial year 
that a self-determination contract is in effect, the amount required to 
be paid under paragraph (2) will include start-up costs consisting of 
the reasonable costs that have been incurred or will be incurred on a 
onetime basis under the contract necessary to:
    (a) Plan, prepare for, and assume operation of the program, 
function, service, or activity that is the subject of the contract; 
and,
    (b) Ensure compliance with the terms of the contract and prudent 
management.
    For specific guidance, including examples of start-up costs, see 
the BIA web site 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'' will be 
maintained, which will list, in order of priority, the name of the 
tribe or tribal organization, the name 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 beginning of operation of the new 
or expanded portion of the contract or annual funding agreement by the 
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 before January 1 of each year will be 
considered a January 1 start date.
    ``Application date'' means 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 of that 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 contracted or included in an annual funding agreement 
and contract support requirements.
    If two tribes or tribal organizations have the same start date and 
application date, the next date for determination of priority will be 
the date the fully complete application was received by the BIA.
    If all are equal, and if funds remaining in the ISD fund are not 
enough to fill the entire amount of each award's contract support 
requirement, then each will be awarded a proportionate share of its 
requirement and will remain on the Indian Self-Determination Fund 
roster in appropriate order of priority for future distributions.
    New contract/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/annual funding agreement is defined as a 
contract/annual funding agreement which has become enlarged, during the 
current fiscal year through the assumption of additional programs 
previously performed by the BIA.

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 2001 and continued in FY 2002, 
including contracted or annual funding agreement programs moved to TPA 
in FY 2002.
    (2) Direct program funding increases due to inflation adjustments 
and general budget increases.
    (3) TPA programs started or expanded in FY 2002 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 by using the criteria prescribed in the Choctaw decision 
dated September 18,

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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.
    (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 
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 2001 and are to be awarded in FY 2002 are considered 
as ongoing.
    This notice is published under the authority delegated by the 
Secretary of the Interior to the Assistant Secretary--Indian Affairs by 
209 Departmental Manual 8.1.

    Dated: December 19, 2001.
Neal A. McCaleb,
Assistant Secretary--Indian Affairs.
[FR Doc. 02-300 Filed 1-4-02; 8:45 am]
BILLING CODE 4310-02-P