[Federal Register Volume 77, Number 30 (Tuesday, February 14, 2012)]
[Notices]
[Pages 8219-8220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2953]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration


Notice of Indirect Cost Rates for the Office of National Marine 
Sanctuaries for Fiscal Years 2008 and 2009

AGENCY: National Oceanic and Atmospheric Administration (NOAA), 
Commerce.

ACTION: Notice.

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SUMMARY: The National Oceanic and Atmospheric Administration's (NOAA's) 
Office of National Marine Sanctuaries (ONMS) is announcing the 
establishment of new indirect cost rates on the recovery of indirect 
costs for its component organizations involved in natural resource 
damage assessment and restoration activities for fiscal years (FY) 2008 
and 2009. The indirect cost rates for these fiscal years and dates of 
implementation are provided in this notice. More information on these 
rates and the ONMS policy can be obtained from the address provided 
below.

FOR FURTHER INFORMATION CONTACT: Lisa Symons, 301-713-7275; FAX: 301-
713-0404.

SUPPLEMENTARY INFORMATION: The mission of the ONMS with respect to 
Natural Resource Damage Assessment (NRDA) is to repair and restore 
injuries to sanctuary resources caused by: releases of hazardous 
substances or oil under the Comprehensive Environmental Response, 
Compensation, and Liability Act (CERCLA) (42 U.S.C., 9601 et seq.) or 
the Oil Pollution Act of 1990 (OPA) (33 U.S.C., 2701 et seq.); or 
physical injuries under the National Marine Sanctuaries Act (NMSA) (16 
U.S.C., 1431 et seq.). ONMS consists of the following component 
organizations: thirteen national marine sanctuaries and 
Papahanaumokuakea Marine National

[[Page 8220]]

Monument within NOAA's National Ocean Service. The Natural Resources 
Section of the Office of NOAA General Counsel supports litigation for 
ONMS. ONMS conducts NRDAs as a basis for recovering damages from 
responsible parties and uses recovered funds to restore injured 
sanctuary resources.
    When addressing NRDA incidents, NOAA seeks to recover the costs of 
the damage assessment from responsible parties who are potentially 
liable for an incident. Costs include direct and indirect costs. Direct 
costs are costs for activities that are clearly and readily 
attributable to a specific output. In the context of the ONMS, outputs 
are typically associated with damage assessment cases. Indirect costs 
reflect the costs for activities that collectively support the ONMS's 
mission and operations in support of NRDA work, but not connected to 
specific cases. For example, indirect costs include general 
administrative support and traditional overheads. Although these costs 
may not be readily traced back to a specific direct activity, indirect 
costs may be allocated to direct activities using an indirect cost 
distribution rate.
    Consistent with standard federal accounting requirements, the ONMS 
is required to account for and report the full costs of its programs 
and activities. Further, the ONMS is authorized by law to recover 
reasonable costs of damage assessment and restoration activities under 
CERCLA, OPA, and the NMSA. Within the constraints of these legal 
provisions and their regulatory applications, the ONMS has the 
discretion to develop indirect cost rates for its component 
organizations and formulate policies on the recovery of indirect cost 
rates subject to its requirements.

The ONMS's Indirect Cost Effort

    In October 2002, the ONMS hired the public accounting firm Cotton & 
Company (C&C) to: (1) Evaluate the cost accounting system and 
allocation practices; (2) recommend the appropriate indirect cost 
allocation methodology; and, (3) determine the indirect cost rates for 
the organizations that comprise the ONMS.
    The ONMS requested an analysis of its indirect costs for fiscal 
year 2002. The goal was to develop the most appropriate indirect cost 
rate allocation methodology and rates for the ONMS component 
organizations. C&C has continued its assessment of the ONMS's indirect 
cost rate system and structure from FY 2002 to present.
    C&C concluded that the cost accounting system and allocation 
practices of the ONMS and GCNR component organizations are consistent 
with federal accounting requirements. C&C also determined that the most 
appropriate indirect allocation method was the Direct Labor Cost Base 
for all ONMS and GCNR component organizations. The Direct Labor Cost 
Base is computed by allocating total indirect costs over the sum of 
direct labor dollars plus the application of NOAA's leave surcharge and 
benefits rates to direct labor. The indirect cost rates that C&C has 
computed for the ONMS and GCNR component organizations were further 
assessed as being fair and equitable. A report on C&C's effort, their 
assessment of the ONMS's cost accounting system and practice, and their 
determination respecting the most appropriate indirect cost methodology 
and rates can be obtained from: Lisa Symons, ONMS 1305 East West 
Highway, Silver Spring, MD 20910.
    C&C reaffirmed that the Direct Labor Cost Base is the most 
appropriate indirect allocation method for the development of the FY 
2008 and 2009 indirect cost rates.

The ONMS's Indirect Cost Rates and Policies

    The ONMS will apply the indirect cost rates for FY 2008 and 2009 as 
recommended by C&C for each ONMS component as provided in the following 
table. The ONMS will apply the FY 2009 indirect rate to the Natural 
Resources Section as noted in the following table. Prior year indirect 
costs can be found in notices from the NOAA Office of Response and 
Restoration.

------------------------------------------------------------------------
                                                               FY 2008
                                                               indirect
                       ONMS component                            rate
                                                              (percent)
------------------------------------------------------------------------
ONMS Florida Keys National Marine Sanctuary (FKNMS)........       310.58
ONMS All sites, except FKNMS...............................       269.34
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------------------------------------------------------------------------
                                                               FY 2009
                                                               indirect
                       ONMS component                            rate
                                                              (percent)
------------------------------------------------------------------------
ONMS Florida Keys National Marine Sanctuary (FKNMS)........       397.63
ONMS All sites, except FKNMS...............................       336.50
Natural Resources Section, Office of General Counsel ONMS          74.01
 cases only................................................
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    The FY 2008 and 2009 rates identified in this policy will be 
applied to all damage assessment and restoration case costs incurred 
between October 1, 2008 and present, using the Direct Labor Cost base 
allocation methodology. For cases that have settled and for costs 
claims paid prior to the effective date of the fiscal year in question, 
the ONMS will not re-open any resolved matters for the purpose of 
applying the rates in this policy. For cases not settled and cost 
claims not paid prior to the effective date of the fiscal year in 
question, costs will be recalculated using the rates in this policy. 
The ONMS will use the FY 2009 rates for damage assessment and 
restoration case costs incurred from October 1, 2008 through future 
fiscal years until year-specific rates are developed.

    Dated: January 31, 2012.
Daniel Basta,
Director, Office of National Marine Sanctuaries.
[FR Doc. 2012-2953 Filed 2-13-12; 8:45 am]
BILLING CODE 3510-NK-M