Indirect Cost Rate Negotiation Services

The Interior Business Center’s Indirect Cost Services Division negotiates and approves indirect cost rates on behalf of the Department of the Interior and nine other federal agencies. Annually, we approve over 1,400 indirect cost rates for about 1,200 non-federal entities including Native American, state and local governments, and nonprofits. Through rate negotiations the services we provide saves the federal government on average $28 million, annually.

Indirect Cost Services Negotiation Partners

We negotiate with organizations that receive the majority of their federal funding from the Department of the Interior – or are designated by the Office of Management and Budget to negotiate with the Department of the Interior – such as insular areas and tribal governments.

We also negotiate with various nonprofit organizations on behalf of other federal agencies or departments through interagency agreements.

Initiating a Rate Negotiation Process

Our rate negotiation process begins when you submit an indirect cost rate proposal with supporting documentation, including your audited financial statements.

Guidance for Preparing and Submitting an Indirect Cost Proposal

Guidance for preparing your indirect cost proposals or cost allocation plans differs depending on the organization type. Click on the link below for guidance and tools for your organization.

 ICS information for nonprofit organizations  ICS information for Insular Areas, State, and Local Governments.
 ICS information for Indian Tribal Governments  ICS FAQs

Submission Timeframes for Indirect Cost Proposals

The indirect cost proposal or cost allocation plan is due annually and must be submitted within six months following fiscal year closeout. Some examples:

Please be advised that we do not solicit proposals. Proposals are processed on a first-in, first-out basis.

Contact Information for Additional Questions or Submittals

Indirect Cost Services
Interior Business Center
U.S. Department of the Interior
2180 Harvard Street, Suite 430
Sacramento, CA 95815

Phone: 916.566.7111
Fax: 916.566.7110


We have made every attempt to ensure that the information on this site conforms to current laws, regulations, and guidance governing the negotiation of indirect cost rates. Please understand that the actual texts of these laws, regulations, and guidance are the definitive sources for information and direction on indirect cost rate negotiations. Individual agencies responsible for developing and enforcing regulations on indirect costs may clarify their regulations from time to time, which can change how you apply the regulations in negotiating your indirect cost rates.