[Federal Register Volume 68, Number 121 (Tuesday, June 24, 2003)]
[Notices]
[Pages 37511-37514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15814]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Guidance for Distributing Fiscal Year 2003 Contract Support Funds 
and Indian Self-Determination Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of methodology for distribution and use of FY 2003 
Contract Support Funds and Indian Self-Determination Funds.

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SUMMARY: The Bureau of Indian Affairs (BIA) is publishing this notice 
to inform the public, the tribes, and Federal staff of the methodology 
that we will use in distributing Contract Support Funds (CSF) and 
Indian Self-Determination Funds (ISDF) for FY 2003. We distribute these 
funds as authorized by the Indian Self-Determination and Education 
Assistance Act of 1975, and financed by funds appropriated by the 
Snyder Act. We are publishing the methodology to ensure that eligible 
recipients and responsible federal employees are aware of program 
operations for this fiscal year. We are not establishing regulations.

DATES: The ``FY 2003 CSF Needs Report'' is due July 15, 2003. Final 
distribution of Contract Support Funds will occur on or about July 31, 
2003. We will distribute ISDF on a first-come first-serve basis until 
funds are depleted.

ADDRESSES: Submit the ``FY 2003 CSF Needs Report'' to: Harry Rainbolt, 
Bureau of Indian Affairs, Office of Tribal Services, 1951 Constitution 
Avenue NW., MS 320-SIB, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Harry Rainbolt, (202) 513-7030.

SUPPLEMENTARY INFORMATION: Title I and Title IV of Pub. L. 93-638, the 
Indian Self-Determination and Education Assistance Act of 1975, 
authorizes BIA to distribute annually CSF and ISDF. In making these 
distributions for FY 2003,

[[Page 37512]]

BIA will follow the procedures in this notice.
    The FY 2003 ISDF requirements for new and expanded contracts and 
self-governance funding agreements may be submitted to BIA throughout 
the year as the need arises.

Part 1--Contract Support Funds

1.1 What Is the Purpose of Contract Support Funds (CSF)?

    BIA provides CSF to meet the indirect cost need identified for 
ongoing/existing self-determination contracts and self-governance 
compacts that are financed with funds appropriated to us under the 
Snyder Act.

1.2 What Is Designated as an Ongoing/Existing Contract or Funding 
Agreement?

    An ongoing/existing contract or annual funding agreement is a BIA 
program operated under a self-determination contract or self-governance 
compact on an ongoing basis, which was entered into before the current 
fiscal year.

1.3 What Criteria Does BIA Use To Determine CSF Amounts for Existing 
Contracts and Annual Funding Agreements?

    (1) All contracted or compacted programs, functions, services or 
activities included in annual funding agreements in the previous fiscal 
year and continued in the current fiscal year that are financed with 
funds appropriated to BIA;
    (2) Direct funding increases because of inflation adjustments and 
general budget increases for programs financed with funds appropriated 
to BIA;
    (3) Programs, functions, services, or activities started or 
expanded in the current fiscal year that are a result of a change in 
priorities from other already contracted, annual funding agreement 
programs, functions, services, or activities financed with funds 
appropriated to BIA;
    (4) CSF differentials associated with tribally-operated schools 
that receive indirect costs through the application of the 
administrative cost grant formula. These differentials must be 
calculated under 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 the FOR FURTHER INFORMATION CONTACT 
section. Tribes that received differential funding under this category 
in the past are eligible to receive funding from this account. Tribes 
that did not receive differential funding under this category in the 
past may be eligible for funding from the ISDF;
    (5) Funds available for Indian Child Welfare Act (ICWA) programs or 
reprogrammed from ICWA programs to other programs will be considered 
ongoing for purposes of payment of contract support costs; and
    (6) Programs, functions, services, or activities funded from 
sources other than those listed above that were contracted in the 
previous year and are to be continued under contract in the current 
year are considered ongoing.

1.4 Does an Increase or Decrease in the Level of Funding From Year to 
Year Affect the Designation of an Ongoing/Existing Contract or Annual 
Funding Agreement?

    No.

1.5 How Does BIA Determine Eligibility for CSF?

    All self-determination contractors and self-governance tribes/
consortia with either an approved indirect cost rate, current indirect 
cost rate proposal, or an approved current lump sum agreement are 
eligible to receive CSF.

1.6 Can I Use Current Fiscal Year CSF To Pay Prior Year Indirect Cost 
Shortfalls?

    No. The use of current CSF to pay prior year indirect cost 
shortfalls is not authorized.

1.7 Are There Any Restrictions on Distributing CSF for Indirect Costs?

    Yes. The following conditions must be met before BIA distributes 
CSF to pay indirect costs:
    (1) Programs, functions, services, activities, or portions thereof, 
must be financed with funds appropriated to BIA under the Snyder Act; 
and
    (2) Programs, functions, services, activities, or portions thereof, 
must be included in a self-determination contract or a self-governance 
funding agreement with BIA.

1.8 Is There Any Other Restriction on Distributing CSF for Indirect 
Costs?

    Yes. Self-determination contracts or self-governance agreements 
that receive appropriated funds from other Federal agencies, the 
Department of the Interior bureaus, offices, or other sources are not 
eligible to receive CSF.

1.9 How Can Tribes or Tribal Organizations Find Funding To Pay for 
Their Indirect Cost Needs for Programs That Are Excluded From Receiving 
CSF?

    Those programs that are not eligible to receive CSF or IDSF to 
cover indirect cost needs must use program-appropriated funds to cover 
their indirect cost needs. For example, funding for Indian Reservation 
Roads construction is transferred to BIA from the Federal Highway Trust 
Fund by the Department of Transportation. Therefore, this program is 
excluded from receiving CSF and must use allowable program funds to 
cover indirect cost needs.

1.10 How Does BIA Determine the Amount of CSF a Tribe or Tribal 
Organization Is Eligible To Receive?

    BIA determines the amount of CSF a tribe or tribal organization is 
eligible to receive by taking the tribe's or tribal organization's 
direct cost base (DCB) and multiplying it by the indirect cost rate 
(ICR).

(DCB x ICR = 100 percent CSF need)

1.11 How Does BIA Decide What Direct Cost Base To Use To Determine CSF 
Need?

    BIA uses the following procedures to determine the direct cost 
base:

------------------------------------------------------------------------
                                               Then BIA will make the
  If a tribe's direct cost base is . . .     following adjustments . . .
------------------------------------------------------------------------
(1) Total direct cost, less capital         (1) Total direct cost x
 expenditures and pass-through               indirect cost rate = 100
                                             percent CSF need.
(2) Total salaries and wages                (2) Funding amounts for
                                             everything except salaries
                                             and wages will be excluded.
                                            (Total salaries and wages x
                                             indirect cost rate = 100
                                             percent CSF need.)
(3) A negotiated lump sum, which is the     (3) Capital expenditures and
 total current year program funds, less      pass-through funds will be
 capital expenditures and pass-through       excluded.
                                            (Total direct cost x lump
                                             sum rate = 100 percent CSF
                                             need.)
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1.12 How Does BIA Determine What Indirect Cost Rate To Use When 
Calculating the Amount of CSF That Eligible Tribes or Tribal 
Organizations Will Receive?

    When calculating the amount of CSF that eligible tribes or tribal 
organizations will receive, BIA uses the following procedures:

[[Page 37513]]



------------------------------------------------------------------------
                 If . . .                            Then . . .
------------------------------------------------------------------------
(1) The tribe or tribal organization has    (1) The Regional Director or
 an approved indirect cost rate or an        Office of Self-Governance
 indirect cost proposal currently under      Director must use the
 consideration by the National Business      tribe's or tribal
 Center (NBC)                                organization's current
                                             indirect cost.
(2) The tribe or tribal organization        (2) The most current of the
 proposes to use the prior-year approved     two rates must be used in
 rate or the rate that is in the current     determining the amount to
 proposal under consideration by the NBC*    award.
(3) The tribe or tribal organization can    (3) The Awarding Officials
 document that it is unable to negotiate     may negotiate a reasonable
 an indirect cost rate because of            lump sum amount with the
 circumstances beyond its control and        tribe or tribal
 requests a lump sum amount                  organization for FY 2003.**
 
------------------------------------------------------------------------
*This rate is temporary and subject to finalization through negotiation
  with NBC and may result in actual over- or under-recovery of indirect
  costs.
**Beginning with 2004 enacted appropriations, a reasonable lump sum
  amount must not exceed 15 percent of total current-year program funds,
  less capital expenditures and pass-through.

1.13 What Happens if the ``CSF Needs Report'' Identifies an Overall BIA 
CSF Need That Exceeds Available CSF?

    The CSF distribution will be made on a pro rata basis so that all 
eligible tribes and tribal organizations receive the same percentage of 
their reported need. For example, if the pro rata amount is 92 percent, 
each tribe or tribal organization will receive 92 percent of its 
identified indirect cost need.

1.14 How Does BIA Compute the Indirect Cost Need?

    BIA uses one of the following formulas when determining a tribe's 
or tribal organization's CSF need:
    (1) Total direct cost x indirect cost rate = Indirect cost need.
    (2) Total salaries and wages x indirect cost rate = Indirect cost 
need.
    (3) Direct cost base x lump sum rate = Indirect cost need.

1.15 Are Construction Contracts Eligible for CSF?

    No additional CSF funds are authorized to meet these costs. All 
administrative or indirect costs must come from the total funding 
provided for the construction project.

1.16 Who Is Responsible for Submitting the ``CSF Needs Report'' to the 
Office of Tribal Services (OTS)?

    Each regional office and the Office of Self-Governance must submit 
a ``CSF Needs Report'' for ongoing/existing contracts and annual 
funding agreements.

1.17 How Does BIA Distribute CSF to Tribes and Tribal Organizations?

    (1) In the initial distribution of CSF, BIA will distribute to each 
regional office and the Office of Self-Governance 85 percent of the 
total amount of CSF provided in the previous fiscal year. From this 85 
percent, the regional office will award 75 percent of the CSF need 
identified for each contract or annual funding agreement that meets the 
established criteria.
    (2) In the second or final allotment of CSF, all tribal contractors 
and self-governance tribes/consortia will receive a pro-rated share of 
the CSF, based on the program funds in the contract or annual funding 
agreement at that time.

1.18 What Can a Contractor Do To Cover Its Total CSF Needs if the CSF 
Provided Are Insufficient?

    If your CSF funds are insufficient, you may reprogram funds to make 
up deficiencies to recover your full indirect cost need. This 
reprogramming authority is limited to funds in the Tribal Priority 
Allocation (TPA) portion of the BIA budget or annual funding agreement.

1.19 Can Funds From Other BIA Programs That Are Not in the TPA Be Used 
To Meet a CSF Shortfall?

    No. Congressional appropriation language does not provide authority 
for BIA to reprogram funds from other Bureau programs to meet any CSF 
shortfall. However, appropriation language provides individual tribes 
authority to reprogram funds from within its total TPA base to meet any 
CSF shortfalls.

Part 2--Indian Self-Determination Funds

2.1 What Are Indian Self-Determination Funds (ISDF)?

    The ISDF are funds that pay the CSF and start-up costs for new or 
expanded contracts or annual funding agreements.

2.2 What Are the Definitions of the Terms ``New Contract or Annual 
Funding Agreement'' and ``Expanded Contract or Annual Funding 
Agreement'?

    (a) A new contract or annual funding agreement is defined as the 
initial transfer of a program, function, service, or activity 
previously operated by BIA to a tribe, tribal organization or 
consortium.
    (b) 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, functions, services, or activities (or portion thereof) 
previously operated by BIA.

2.3 How Are ISDF Distributed?

    BIA provides ISDF on a ``first-come, first-served'' basis. BIA 
funds requests at 100 percent of the ``identified need'' until the ISDF 
are depleted.

2.4 How Does BIA Distribute ISDF for a New and Expanded Contract or 
Annual Funding Agreement?

    Each regional office or the Office of Self-Governance must submit 
an ``ISDF Needs Report'' to the Office of Tribal Services when a new 
contract or annual funding agreement is awarded, or when existing 
contracts or annual funding agreements are expanded.

2.5 What Must a Complete ``ISDF Request Package'' for New and Expanded 
Contracts/Annual Funding Agreements Contain?

    A complete request package for a new/expanded annual funding 
agreement must contain:
    (1) Indirect cost needs; and
    (2) Startup cost needs.

2.6 What Happens if Requests Are Received After the ISDF Have Been 
Depleted?

    The ISDF request will not be funded for the fiscal year. However, 
requests received after the ISDF have been depleted will be considered 
first for ISDF funding in the following fiscal year.

2.7 How Does BIA Compute the Indirect Cost Need?

    We compute the indirect cost need following the indirect cost base 
computation methodology provided in this announcement.

2.8 How Does BIA Determine What Indirect Cost Rate To Use When 
Calculating the Amount of ISDF That Eligible Tribes or Tribal 
Organizations Will Receive?

    When calculating the amount of ISDF that eligible tribes or tribal 
organizations will receive, BIA uses the following procedures:

[[Page 37514]]



------------------------------------------------------------------------
                If . . .                          Then . . .
---------------------------------------------------------------------
(1) The tribe or tribal organization has  (1) The Regional Director
 an approved indirect cost rate or an      or Office of Self-
 indirect cost proposal currently under    Governance Director must
 consideration by the National Business    use the tribe's or tribal
 Center (NBC).                             organization's current
                                           indirect cost.
(2) The tribe or tribal organization      (2) The most current of
 proposes to use the prior-year approved   the two rates must be
 rate or the rate that is in the current   used in determining the
 proposdal under consideration by the      amount to award.
 NBC *.
(3) The tribe or tribal organization can  (3) The Awarding Officials
 document that it is unable to negotiate   may negotiate a
 an indirect cost rate because of          reasonable lump sum
 circumstances beyond its control and      amount (not to exceed 10
 requests a lump sum amount.               percent) with the tribe
                                           or tribal organization
                                           for FY 2003.**
------------------------------------------------------------------------
* This rate is temporary and subject to finalization through negotiation
  with NBC and may result in actual over- or under-recovery of indirect
  cost.
** Beginning with 2004 enacted appropriations, a reasonable lump sum
  amount must not exceed 15 percent of total current-year program funds,
  less capital expenditure and pass-through.

2.9 What Are Considered ``Startup Costs''?

    Startup costs are direct costs for items that are identified in the 
program operational budget for the new or expanded contract/annual 
funding agreements. These costs must be allowable costs, allocable to 
the new or expanded program, reasonable, and a one-time cost only 
within the context of the operational budget.

2.10 What Information for a ``Startup Cost'' Request Must I Include in 
the ISDF Request Package?

    The request must contain:
    (1) A copy of the program operational budget for the new or 
expanded contract/annual funding agreement activity, with the startup 
cost items identified;
    (2) A copy of the program operational budget narrative; and
    (3) Documentation of the provision of technical assistance and 
negotiation in regard to the startup cost items.

2.11 Will BIA Consider Funding Requests That Do Not Meet the 
Requirements of 2.10?

    No. BIA will not consider funding ISDF requests that do not contain 
the items in section 2.10 of this notice.

2.12 Are There Any Contracts or Agreements That Cannot Receive ISDF?

    Yes. Self-determination contracts or self-governance agreements 
that receive appropriated funds from Department of the Interior 
bureaus, offices, or other sources other than BIA are not eligible to 
receive ISDF.

2.13 Are There Any Guidelines That Can Be Used To Help Provide 
Technical Assistance?

    Yes. Use the ``Guidance for Contract Support Costs'' handbook to 
assist in negotiating and providing technical assistance for startup 
costs.

2.14 What Happens to an Incomplete ISDF Request?

    OTS will return the request to the office of origin for proper 
completion and re-submission.

    Dated: June 13, 2003.
Aurene M. Martin,
Acting Assistant Secretary--Indian Affairs.
[FR Doc. 03-15814 Filed 6-23-03; 8:45 am]
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