Indirect Cost Negotiation Services

The Interior Business Center negotiates and issues indirect cost rates on behalf of the federal government. Indirect costs include expenses (such as advertising, computing, maintenance, security, supervision, etc.) incurred in joint usage and difficult to assign to or identify with a direct function or program. ICS services help ensure that indirect costs paid by the U.S. Government are legally sound, fair, and equitable.

What's New with Indirect Cost Negotiation Services?

September 2015 –Notice of Final Settlement Agreement RAMAH NAVAJO CHAPTER, OGLALA SIOUX TRIBE, and PUEBLO OF ZUNI, for themselves and on behalf of a class of persons similarly situated, Plaintiffs, vs. SALLY JEWELL, Secretary of the Interior, et al.

2CFR Part 200 – Effective December 26, 2014

10% De Minimis Rate 

2CFR200.414 (f) In addition to the procedures outlined in the appendices in paragraph (e) of this section, any non-Federal entity that has never received a negotiated indirect cost rate, except for those non-Federal entities described in Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals, paragraph D.1.b, may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC) which may be used indefinitely. As described in §200.403 Factors affecting allowability of costs, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal awards until such time as a non-Federal entity chooses to negotiate for a rate, which the non-Federal entity may apply to do at any time.

The use of de minimis rates does not require the review and approval of the cognizant agency for indirect costs. Therefore, Indirect Cost Services does not provide approval of de minimis rates.

Possible Rate Extensions

2CFR 200.414 (g) Any non-Federal entity that has a current federally negotiated indirect cost rate may apply for a one-time extension of the rates in that agreement for a period of up to four years. This extension will be subject to the review and approval of the cognizant agency for indirect costs. If an extension is granted the non-Federal entity may not request a rate review until the extension period ends. At the end of the 4-year extension, the non-Federal entity must re-apply to negotiate a rate. Subsequent one-time extensions (up to four years) are permitted if a renegotiation is completed between each extension request.

Filing for Rate Extensions:

Only final and predetermined rates may be eligible for consideration of rate extensions.  Requests for rate extensions of a current rate will be reviewed on a case-by-case basis. Please send your request to our office indicating the rate and fiscal periods to be covered by the rate extension.

Please be advised that we cannot extend fixed with carryforward or provisional rate types.  Refer to the COFAR FAQs at for additional information.

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 one of the 'Related Links' below for guidance and tools for your organization type.

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:

  • If your fiscal year ends on September 30, your indirect cost proposal or cost allocation plan is due by March 31
  • If your fiscal year ends on December 31, your 1nd1rect cost proposal or cost allocation plan is due by June 30
  • If your fiscal year ends on June 30, your indirect cost proposal or cost allocation plan is due by December 31

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

U.S. Department of the Interior
Interior Business Center
Indirect Cost Service
650 Capitol Mall, Suite 7-400
Sacramento, CA 95814

Phone: 916-930-3803
Fax: 916-930-3804
Email Us


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.

Related Links