[Federal Register Volume 86, Number 226 (Monday, November 29, 2021)]
[Notices]
[Pages 67691-67692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25919]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration


Notice of Indirect Cost Rates

AGENCY: Office of National Marine Sanctuaries (ONMS), National Ocean 
Service (NOS), National Oceanic and Atmospheric Administration (NOAA), 
Department of Commerce (DOC).

ACTION: Notice of indirect cost rates for the Office of National Marine

[[Page 67692]]

Sanctuaries Natural Resource Damage Assessments for fiscal year 2014.

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SUMMARY: The National Oceanic and Atmospheric Administration's (NOAA's) 
Office of National Marine Sanctuaries (ONMS) announces the 
establishment of new indirect cost rates for the recovery of indirect 
costs for its component organizations involved in natural resource 
damage and restoration activities for fiscal year (FY) 2014. NOAA 
provides the indirect cost rates for this fiscal year and the dates of 
implementation in this notice. The public can obtain more information 
on this rate from the address provided below in the ADDRESSES section.

DATES: This notice is effective on November 29, 2021.

ADDRESSES: Vicki Wedell, phone 240-676-3805; email 
[email protected]; or 1305 East-West Highway, N/NMS, Silver Spring, 
MD 20910.

FOR FURTHER INFORMATION CONTACT: Vicki Wedell, phone 240-676-3805; 
email [email protected].

SUPPLEMENTARY INFORMATION:
    The Natural Resource Damage Assessment (NRDA) mission of ONMS is to 
restore injuries to sanctuary resources caused by the release 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 Action 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 conducts NRDAs as a basis for 
recovering damages from responsible parties and uses the funds 
recovered to restore injured sanctuary resources.
    When addressing NRDA incidents, the costs of the damage assessment 
are recoverable from individuals and organizations who are potentially 
liable for an incident. Total costs include both direct and indirect 
costs. Direct costs are costs for activities that are clearly and 
readily attributable to a specific case or other program products. In 
contrast, indirect costs reflect the costs for activities that 
collectively support ONMS' mission and operations. For example, 
indirect costs include general administrative support overheads. 
Although indirect 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, ONMS is 
required to account for and report the full costs of its programs and 
activities. Further, 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 laws, ONMS has the 
discretion to develop indirect cost rates subject to its requirements.

ONMS's Indirect Cost Effort

    NOAA contracted Empirical Concepts Incorporated (Empirical), who 
subcontracted with the public accounting firm Cotton and Company LLP 
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 ONMS.
    Empirical concluded that the cost accounting system and allocation 
practices of ONMS component organizations are consistent with Federal 
accounting requirements. Empirical also determined that the most 
appropriate indirect allocation method was the Direct Labor Cost Base 
for all ONMS 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. Empirical further assessed that the 
indirect cost rates for the ONMS component organizations were fair and 
equitable. A report on Empirical's assessment and their determination 
can be obtained from the person identified in FOR FURTHER INFORMATION 
CONTACT.

ONMS Indirect Cost Rate and Policies

    ONMS will apply the indirect cost rate for FY2014 as recommended by 
Empirical for each of the ONMS component organizations as provided in 
the following table:

------------------------------------------------------------------------
                                                       Fiscal year 2014
             ONMS component organization                 indirect rate
                                                           (percent)
------------------------------------------------------------------------
Office of National Marine Sanctuaries (except for                 144.22
 Florida Keys National Marine Sanctuary)............
Florida Keys National Marine Sanctuary..............              188.11
------------------------------------------------------------------------

    The ONMS indirect rates increased from the FY2010 rates of 67.95 
percent for all ONMS sites (except Florida Keys National Marine 
Sanctuary (FKNMS)) and 82.35 percent for FKNMS because ONMS had less 
direct case work and more indirect work during FY2014. The indirect 
rates are inversely proportional to direct costs.
    ONMS will apply the FY2014 rates identified in this notice to all 
damage assessment and restoration case costs incurred from October 1, 
2014 until present, using the Direct Labor Cost base allocation 
methodology. For cases that have settled and for cost claims paid prior 
to the effective date of the fiscal year in question, ONMS will not re-
open any resolved matters for the purpose of applying the rates in this 
notice. For cases not settled and cost claims not paid prior to the 
effective date of the fiscal year in question, ONMS will calculate 
costs using the rates in this notice. ONMS will use the FY2014 rates 
for future fiscal years until year-specific rates are developed.

John Armor,
Director, Office of National Marine Sanctuaries, National Ocean 
Service, National Oceanic and Atmospheric Administration.
[FR Doc. 2021-25919 Filed 11-26-21; 8:45 am]
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