Contract Support Costs Self-determination Agreements

Contract Support Costs Self-determination Agreements

Contract Support Costs Self-determination Agreements Pre-Award and Start-up P.L.93-638, the Law and Regulations, as Amended Housekeeping Debra Peebles, Instructor [email protected] Fax #: 505-563-3878 MUTE your phones or chance getting thrown out of the course by the operator.

Do NOT put your phone on HOLD or chance getting thrown out of the course by the operator. If you dont know how to mute your phone, ask someone. If you havent downloaded the course material, do so now. Federal employees must pass the course test at 80% or better. Dont allow for distractions if you are in a room with other people. Technical Assistance Central Office Terrence Parks Central Office 202-513-7625 Central Office West/ Albuquerque, NM

Gary King Acting Advisor Audits 505-563-3745 Debra Peebles P.L. 93-638 Training 505-563-3677 Christine Savilla Audits and Close-outs 505-563-3745 Central Office West/Education/Oklahoma City Office Mary Dupris Education Awarding Official - 405-605-6051 x6 Cheryl Lewis Self-determination Specialist 405-605-6051 x304 Frank Bitonti Special Projects, Construction Terrence Parks/Michelle McCormack FBMS

Give Us an Opportunity to Help You Section 4 (of the Law) Definitions Page 9 self-determination contract means a contract (or grant or cooperative agreement utilized under section 9 of the Act) entered into under title I of this Act between a tribal organization and the appropriate Secretary for the planning, conduct and administration of programs or services which are otherwise provided to Indian tribes and their members pursuant to Federal Law Provided, That no contract (or grant or cooperative agreement utilized under section 9 of this Act) entered into under title I of this act shall

be construed to be a procurement contract. (j) Definitions the Law Treaty Rights Section 106 CONTRACT FUNDING AND INDIRECT COSTS Amount of funds provided: Secretarial Funding Level (2) Contract Support Cost (3) Contract Support Cost (1)

Direct Contract Support Cost Indirect Cost (4) Savings (5) Start-Up Cost (6)Pre-Award Cost Public Law 93-638, as Amended Guidelines for Proposal Preparation and ISD Requests - Start-up Contract Support Let us Define: Start-up costs are one-time costs by

the requesting tribe to plan, prepare and assume operation of a Program, Function, Service or Activity. Occurring either prior to, or, after award of the Self-determination agreement, but, are NOT recurring. Start-up Costs Start-up Costs may vary Depending on the capacity of the requesting tribe, and the size and proposed support.

Start-up Requests Costs included in Start-up must be reasonable, necessary, and pay for activities that are not provided in DIRECT contract support, or INDIRECT contract support as defined Section 106 of the Act. Start-up Requests Start-up costs may be those costs that occur after the award of the

agreement. These can be costs that the tribe incurs within the first year of the agreements administration. These costs are deemed necessary to plan, prepare and assume full operation of the agreement. Start-up Requests Start-up costs cannot be used for costs that are otherwise provided for within program funding or for expanding program activities already

in operation. Start-up Requests Section 106 (a)(6), Costs incurred before the initial year is in effect, will not be considered for reimbursement unless there has been provided written notification and document prior to the date costs are incurred. Start-up Request The BIA has determined that the

payment of start-up costs, including cost already incurred, is contingent on the contract being awarded. Start-up Request Risk to a tribe that costs will be incurred in preparing to operate the contract that may not be reimbursed if: If the tribe fails to notify the Awarding Official in

writing of these costs prior to being incurred. Congress fails to appropriate sufficient CSC Congress prohibits BIA from paying these costs Tribe expends funds that are outside reasonable or the nature of these funds. Tribe cannot provide documentation detailing costs. The proposed agreement is not awarded The requested costs are already paid through other grants or contracts. Start-up Costs The Start-up or Pre-Award letter from

the tribe to the Region, should address the unique needs it wants reimbursed, and review these costs with the Region to preempt any issues that may arise prior to approval or declination of these costs. The letter may need to be re-written as circumstances change. Start-up Request

Eligible costs for purposes of receiving funding shall include reasonable and allowable costs, but must be evaluated by the tribe and the Secretary for possible duplication as described in Section 106 (a)(3), subsection (a)(1). Contract Support Cost Policy Adopted in 2006,and Implement in 2007

Purpose is intended to offer further guidance to both the tribes and federal entities. It will provide instructional guidance on determining amounts of start-up, direct, and indirect support costs. Contract Support Cost Policy Page 2 3. Policy It is the policy to provide for a uniform and equitable system of distributing CSC funds to new and existing P.L.93-638 compacts and contracts, and to preserve and support each awardees right to contract under

P.L.93-638. 4. Authorizing Legislation This Policy is authorized pursuant to the Snyder Act and other legislation authorizing programs for the benefit of Indians. The development of this Policy has involved the active participation representatives from Indian Tribes. Policy

Page 3 Roles and Responsibilities Director, Bureau of Indian Affairs, development of National Indian Self-determination Policy. Regional Directors, BIA, carry out policy as directed, and for overseeing the implementation of policy either directly or via Agency Superintendents. Awardees and BIA staff, facilitate the determination of tribal CSC requirements. These people responsibilities are set forth in the Delegation of Authority Handbook.

Policy Appeal rights by the tribe are still in effect for all Contract Support determinations. Policy Definitions

(D)Contract Support Costs (F)CSC Requirement. (J)Direct Contract Support Costs (K)Indian Self-determination (ISD)Fund (L)Indirect Costs (N)Line Officer (P)Non-Recurring Funds (R)Recurring Funds (U)Start-up Costs Start-up Costs, Section 106 and the Policy

Sections 106 (a)(5)-(a)(6)/Page 9 Policy Initial Year Start-up costs for PFSAs will only be provided to an contractor once in the initial year of transfer. No additional start-up cost will be justified if the activity is transferred to a subcontractor, or sub-awardee. Note: Start-up costs are not operational or administrative funds.

Examples of Start-up costs, necessary in the first year of an agreements execution are: Purchase of administrative computer hardware and software; Staff development and training Systems development Equipment and furniture Pre-Award Cost Those costs incurred prior to the award of the agreement, or prior to the initial year, are costs to plan for, and assume the operation of a new

or expanded contract. These costs are subject to notification Approval from the Line Officer (Approving Official) Pre-Award Costs These costs are determined on the basis of actual expended costs which can be deemed reimbursable. Once approved or declined by a Line Officer, the notification should be reviewed by the Awarding Official.

These costs will be reimbursed by the ISD Fund. Pre-Award Costs Pre-Award Costs examples: Planning tribal Program Standards (see Section 102 and 105 of the Act), redesign standards, and planning program delivery. Program management development (see Subpart F of the Regulations) Specialized training to implement the program. Also see: Appendix A of the Policy

Remember: Start-up/Pre-Award Costs must be provided in writing before such costs are incurred. The ISD Fund, or Pool 1 The First Pool, Pool 1., or the ISD Fund, in other words: the Indian Selfdetermination Fund, is dedicated (funding support) to new and expanded awards. Who allocates these funds: rather than the Region (as is the case for Direct and Indirect funding) BIA Central Office

allocates Pool 1 or the ISD Fund. Start-up Funds If an awardee requests to start activity with a term or begin date that is less than a full year, start-up costs will be identified in the full amount, as approved. However, Direct and Indirect costs to the agreement will be pro-rated to reflect the reduction award period in the first year of the award.

ISD Funding Appropriate and Time Frames The ISD Fund typically covers Start-up for Tribal Priority Allocation (TPA)agreements. The yearly allocation has been approximately $2-3 Million Page 14 Policy Allocations from the Fund are made shortly after July 2nd of each year.

NOTE: to the extent available, Start-up funding is provided to each approved agreement the initial year of performance. ISD Funding Appropriate and Time Frames ISD Requests will be distributed on a pro-rated basis until all Start-up have been fully paid as approved by the Agency and Central Office. Then, on a pro-rated basis, by dividing the total of all remaining ISD requests by the remaining

available ISD Fundsup to, the national average percentage of CSC currently being paid. Could include a pro-rated payment of combined Direct and Indirect funds. Keep in mind, Pool 1 is a $2-3 Million pot. Leftover Funding IF, there should be funds leftover in the ISD Fund, the money will go into the third of the two other Pools.

Pool 2, Reoccurring Contract Support Funds following, or subsequent to the initial year, allocated to a Region. Pool 3, the Shortfall Pool, available to fund CSC shortfalls. Congress appropriates, and allocated through a bottoms-up process. If there should ever be excess ISD Funds, they will be allocated to this pool. What are considered Reasonable Costs

Costs necessary to pay for activities that are not provided in the amount of the Awardees recurring direct and indirect contract support. Are not operational or reoccurring costs: Example: Costs for inventorying towels in a tribes correctional facility. These are operational. The tribe may need them to startup the facility, however, its an ongoing cost over the administration of the agreement. What are considered Reasonable Costs

Pre-Award Costs are only allowable if written notification has been provided to the BIA before these costs are incurred. Examples University expertise on child adoption will assist a tribe in setting up standards to be used in a social welfare program for intertribal court-ordered child adoptions. Great idea! The Bureau fund request must be in writing. Submitted to the Line Officer. Contingent on award of

agreement. Remember Start-up costs, Pre-Award incurred prior to award are normally computed on the basis of actual expended costs. Start-up, incurred after award, are awarded on the basis of a budget that has been submitted and negotiated with the BIA prior to final award.

Remember Pre-Award of a signed Agreement, and, Start-up cost are in the initial year only. Remember The BIA is only liable to reimburse start-up type costs prior to the award date when the agreement is actually awarded. Tribes are at a risk if: No notification in writing to the Regions Approving or Awarding Official. Funds for items or activities that are outside the nature of

the costs described in the pre-award written notification. No documentation verifying costs Not reasonable, allowable, allocable Proposal not Awarded Request already paid. Duplication of costs. Remember Keep communications open with the Bureau so as not to expend Start-up costs inappropriately. Ensure Start-up Cost notification letter has been received by the Bureau. Since this letter is notification of estimated costs, be

sure it is accurate, so reimbursement will cover the tribes need. Discuss updating a notification letter in a timely manner with the Bureau, should costs and need change. The notification includes a Budget and Budget Narrative. Some Applicable Costs

Personnel Costs Supplies Travel Equipment Consultants Other costs necessary to plan, prepare for, and assume operation. Remember these are not ongoing operation costs. See the BIA CSC Policy Appendix Remember

Start-up and Pre-Award paid through the ISD Fund from Central Office, DSDS, Division Chief. Direct and Indirect are paid through funds (Pool 2 and 3) from the Regional Offices. These are non-recurring funds.

Funds are paid in the following year. Approved Start-up Awarded 2013 will be funded in 2014. Test

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