[Federal Register Volume 70, Number 56 (Thursday, March 24, 2005)]
[Notices]
[Pages 15119-15122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5841]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Guidance for Distributing Fiscal Year 2005 Contract Support Funds 
and Indian Self-Determination Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of methodology for distribution and use of FY 2005 
Contract Support Funds and Indian Self-Determination Funds.

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SUMMARY: The Bureau of Indian Affairs (Bureau) is publishing this 
notice to inform the public, the tribes, and Federal staff of the 
methodology that will be used for the distribution of CSF and ISDF for 
FY 2005. These funds are distributed as authorized by the Indian Self-
Determination and Education Assistance Act of 1975, as amended, and 
financed with funds appropriated under the Snyder Act. This 
distribution methodology is published to ensure eligible recipients and 
responsible federal employees are aware of program operations for this 
fiscal year. This is a guidance document, it is not establishing 
regulations.

DATES: The ``FY 2005 CSF Needs Report'' is due June 30, 2005. Final 
distribution of CSF will be made on a pro-rata basis on or about July 
19, 2005. FY 2005 ISDF will be distributed on a first come, first 
served basis, until funds are depleted.

ADDRESSES: Submit the ``FY 2005 CSF Needs Report'' to: Harry Rainbolt, 
Bureau of Indian Affairs, Office of Tribal Services, 1951 Constitution 
Avenue NW., Mail Stop 320-SIB, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Harry Rainbolt, (202) 513-7630.

SUPPLEMENTARY INFORMATION: Title I and title IV of Public Law 93-638, 
the Indian Self-Determination and Education Assistance Act of 1975, as 
amended, authorizes the Bureau to annually distribute CSF and ISDF. In 
making these distributions for FY 2005, the Bureau will follow the 
procedures in this notice.
    The request for FY 2005 ISDF for new and expanded contracts and 
self-governance funding agreements may be submitted to the Bureau 
throughout the year as the need arises. Approved requests will be 
funded until the ISDF is depleted.

Part 1--Contract Support Funds

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

    The Bureau 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 pursuant to the 
Snyder Act (25 U.S.C. 13). [Note that 25 U.S.C. 450j-3, restricts the 
use of CSF for only self-determination contracts and self-governance 
compacts. Congress directed in the FY 2005 appropriations bill, 
however, that the Secretary continue to distribute indirect and 
administrative cost funds to Tribes and tribal organizations that 
received such funds in FY 2003 or FY 2004.

1.2 How Does BIA Determine Eligibility for CSF?

    All self-determination contractors and self-governance tribes/
consortia with either an approved indirect cost rate, a current 
indirect cost proposal on file with the National Business Center (NBC), 
or an approved current lump sum agreement are eligible to receive CSF.

1.3 How Does the Bureau Determine Indirect Cost Need and CSF Amounts 
for Contracts and Annual Funding Agreements?

    The methodology used to determine indirect cost amount and CSF need 
is as follows:
    (1) Total current year Program fund amount;
    (2) Less exclusions; exclusions are determined as follows:
    (a) For Construction under Public Law 93-638, as amended, title I, 
section 106(h), the amount of construction funding provided for the 
actual ``on-the-ground'' construction activities is an exclusion.
    (b) For a Direct Cost Base consisting of Salaries and Wages, all 
costs except ``Salaries and Wages'' are exclusions.
    (c) For a Direct Cost Base consisting of ``total direct costs less 
capital expenditures and pass-through, such as those items requiring 
minimal administrative effort,'' capital expenditures and pass-through 
items are considered exclusions.
    Capital Expenditure: The acquisition of items of personal property 
with an individual value of $5,000 or more, and real property 
acquisition, renovation or repair with a value of $5,000 or more.
    Pass-Through: Those programs expenditures for items requiring 
minimal level of effort to be performed by tribal administrative 
personnel, such as: grants to individuals (i.e., scholarship grants, 
general assistance grants, etc.); leases; subcontracts; management and/
or professional agreements; etc.
    (3) Direct Cost Base amount;
    (4) Times indirect cost rate;
    (5) Indirect cost amount;
    (6) Times current CSF funding percentage; and
    (7) CSF amount.

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

    An ongoing/existing contract or annual funding agreement is a 
Bureau program operated under a self-determination contract or a self-
governance compact on an ongoing basis, which was entered into before 
the current fiscal year. Examples:
    (1) All contracted or compacted programs, functions, services, 
activities or those included in annual funding agreements in the 
previous fiscal year and continued in the current fiscal year that are 
financed with funds appropriated to the Bureau;
    (2) Direct funding increases for programs financed with funds 
appropriated to the Bureau; and
    (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 the Bureau.

1.5 Does an Increase or Decrease in the Level of Funding From Year to 
Year Affect the Designation of a Contract or Annual Funding Agreement?

    No.

[[Page 15120]]

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

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

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

    Yes. The following conditions must be met before the Bureau 
distributes CSF to pay indirect cost:
    (1) Programs, functions, services, activities, or portions thereof, 
must be financed with funds appropriated under the Snyder Act (25 
U.S.C. 13) or the Tribally Controlled Schools Act of 1988 (25 U.S.C. 
2501 et seq.); and
    (2) Programs, functions, services, activities, or portions thereof, 
must be included in a Bureau self-determination contract or a self-
governance funding agreement or in a grant under the Tribally 
Controlled Schools Act of 1988.

1.8 Is There Any Other Exclusion?

    Yes. Self-determination contracts or self-governance agreements 
that receive appropriated funds from other 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 ISDF to 
cover indirect cost needs must contact the specific program funding 
source to determine the methodology for covering the indirect cost need 
for those programs. This may entail using funds provided for the 
contracted services to cover the indirect cost need. For example, 
funding for Indian Reservation Roads construction is transferred to the 
Bureau from the Federal Highway Trust Fund by the Department of 
Transportation. Therefore, this program is excluded from receiving CSF 
to cover the indirect cost need and must use funds provided for the 
construction activity to cover their indirect cost needs.

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

    See the computation methodology in section 1.3 of this notice.

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

    BIA will use the following procedures to determine the direct cost 
base:

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         If a tribe's direct cost base is . . .             Then BIA will make the following adjustments . . .
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(1) Total direct cost, less capital expenditures and     Total direct cost, minus exclusions = direct cost base
 pass-through.                                            amount. (Exclusions will be on-the-ground construction
                                                          costs, capital expenditures and pass-through.)
(2) Total salaries and wages...........................  Look at program budget and identify amount for salaries
                                                          and wages. (The exclusions will be funding amounts for
                                                          everything except salaries and wages.)
(3) A negotiated Lump Sum Agreement direct cost base is  The exclusions will be amounts for on-the-ground
 the total current year program funds, less amount for    construction costs, capital expenditures and pass-
 on-the-ground construction costs, capital expenditures   through funds.
 and pass-through.
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1.12 How Does the Bureau Determine What Indirect Cost Rate To Use When 
Calculating the Amount CSF Eligible Tribes or Tribal Organizations Will 
Receive?

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

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                        If . . .                                                Then . . .
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(1) The tribe or tribal organization has an approved     The Regional Director or Office of Self-Governance
 indirect cost rate negotiated with the National          Director must use the tribe's or tribal organization's
 Business Center (NBC) or an indirect cost proposal       current rate, if approved, or, if not approved, the
 currently under consideration by the NBC.                proposed indirect cost rate currently under
                                                          consideration.
(2) The tribe or tribal organization proposes to use     The most current rate must be used.*
 the prior-year approved rate.*
(3) A tribe or tribal organization that can document     The Awarding Official may negotiate a reasonable lump
 that they are unable to negotiate an indirect cost       sum amount (not to exceed 15%) with the tribe or
 rate because of circumstances beyond their control may   tribal organization for FY 2005.**
 request negotiation of a lump sum amount.**
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*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 in FY 2004, a reasonable lump sum amount must not exceed 15 percent of total current year program
  funds, less capital expenditure and pass-through.

1.13 What Happens If the Amount Identified in the ``FY 2005 CSF Needs 
Report'' Exceeds the Available FY 2005 CSF Amount?

    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 their 
identified indirect cost need.

1.14 Who Is Responsible for Submitting the ``CSF Needs Report'' to the 
Bureau?

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

[[Page 15121]]

1.15 How Does the Bureau Distribute CSF to Tribes and Tribal 
Organizations?

    (1) In the initial distribution of CSF, the Bureau 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.

1.16 What Can I Do To Cover My Total CSF Needs If the CSF Provided Is 
Insufficient?

    If your CSF funds are insufficient, you may reprogram funds 
provided for the operation of programs 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 
Bureau budget, or annual funding agreement.

1.17 Can Funds From Other Bureau Programs That Are Not in the TPA Be 
Used To Meet CSF Shortfall?

    No. Congressional appropriation language does not provide authority 
for the Bureau to reprogram funds from other Bureau programs to meet 
any CSF shortfall.

1.18 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 the Bureau 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 the Bureau.

Part 2--Indian Self-Determination Funds

2.1 How Are Indian Self-Determination Funds (ISDF) Distributed?

    The Bureau provides ISDF on a ``first-come, first-served'' basis. 
The Bureau will fund requests at 100 percent of the ``identified and 
approved need'' until the ISDF is depleted.

2.2 How Does the Bureau 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 Request'' to the Office of Tribal Services when a new 
contract or annual funding agreement is awarded, or existing contracts 
or annual funding agreements are expanded.

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

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

2.4 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.

2.5 How Does the Bureau Compute the Indirect Cost Need?

    We compute the indirect cost need following the indirect cost 
computation methodology provided in this announcement at section 1.3.

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

    When calculating the amount ISDF eligible tribes or tribal 
organizations will receive, the Bureau follows the following 
procedures:?>

----------------------------------------------------------------------------------------------------------------
                        If . . .                                                Then . . .
----------------------------------------------------------------------------------------------------------------
(1) The tribe or tribal organization has an approved     The Regional Director or Office of Self-Governance
 indirect cost rate negotiated with the National          Director must use the tribe's or tribal organization's
 Business Center (NBC) or an indirect cost proposal       current rate, if approved, or, if not approved, the
 currently under consideration by the NBC.                proposed indirect cost rate currently under
                                                          consideration.
(2) The tribe or tribal organization proposes to use     The most current NBC rate must be used.*
 the prior-year approved NBC rate.*
(3) A tribe or tribal organization that can document     The Awarding Official may negotiate a reasonable lump
 that they are unable to negotiate an indirect cost       sum amount (not to exceed 15 percent) with the tribe
 because of circumstances beyond their control may        or tribal organization for FY 2004.**
 request negotiation of a lump sum amount.**
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* 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 in FY 2004, a reasonable lump sum amount must not exceed 15 percent of total current year program
  funds, less capital expenditure and pass-through.

2.7 What Is Considered ``Startup Cost'' Need?

    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, and reasonable within the context of the 
operational budget.

2.8 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.

2.9 Will the Bureau Consider Funding Requests That Do Not Meet the 
Requirement of 2.8?

    No. The Bureau will not consider funding ISDF requests that do not 
contain the items in section 2.8 of this notice.

[[Page 15122]]

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

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

2.11 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 the negotiation and providing technical assistance for 
startup cost. You may obtain a copy of this handbook by calling the 
telephone number provided in the FOR FURTHER INFORMATION CONTACT 
section.

2.12 What Happens to an Incomplete ISDF Request?

    The request will be returned to the office of origin for proper 
completion and resubmission.

    Dated: March 15, 2005.
Michael D. Olsen,
Acting Principal Deputy Assistant Secretary--Indian Affairs.
[FR Doc. 05-5841 Filed 3-23-05; 8:45 am]
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