BIA Contract Support Costs (CSC) Policy

1
BIA Contract Support Costs (CSC) Policy

• Vickie Hanvey, CPA, MBA
• SG Administrator, Cherokee Nation
• CSC Workgroup Tribal Representative

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CSC Policy

• Ramah vs. DOI (CIV 90-0957)
• a class action lawsuit against DOI
• as part of the settlement, DOI agreed to develop
  a CSC Policy addressing direct contract support
  costs
• DCSC is a required category of all CSC under the
  Indian Self-Determination Act
• CSC Workgroup
• Established in 2004 to develop the CSC Policy.
• Federal and Tribal Representatives
• IHS Policy (differences between BIA outlined in
  Handout)
• May 8, 2006 Contract Support Cost (CSC) Policy
  signed by BIA
• The CSC Policy became effective in FY 2007.
• The CSC Workgroup was reconvened for the purpose
  of implementation of the Policy

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Contract Support CostsISDEA References
Sec. 106(a)(1)
Sec. 106(a)(2)
Indirect CSC
Direct Program Funds
P.L. 93-638 Contract or Compact
Sec. 106(a)(5)(6)
Sec. 106(a)(3)(A)
ISDF (Start Up)
Direct CSC
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CSC Policy

• Indirect costs
• (a) incurred for a common or joint purpose
  benefiting more than one cost objective, and
• (b) not readily assignable to the cost objectives
  specifically benefited, without effort
  disproportionate to the results achieved.
• Negotiated with the cognizant Federal Agency
• (generally DOI National Business
  Center).
• Examples accounting, purchasing, HR
• Indirect Type Costs
• Awardees IDC Rate is 4 or more years old
• Awardees without a negotiated IDC Rate.
• A lump sum amount may be computed (lump sum
  agreement negotiated)

5
CSC Policy

• Direct Contract Support Costs (DCSC)
• Costs incurred for activities that are necessary
  to operate a federal program under the Act and
  that are not contained in either the indirect
  cost (IDC) pool (or indirect type cost budget) or
  the amount computed pursuant to section
  106(a)(1).
• DCSC amounts are awarded on a recurring basis and
  need not be justified each year.
• DCSC negotiated with delegated BIA representative
  
• (DTL July 2007 allows 15 of salaries)
• Examples
• Unemployment taxes on direct program salaries
• Workers compensation insurance on direct program
  salaries
• Cost of retirement for converted Civil Service
  salaries
• Facilities support costs
• (rent/leases, utilities, security, and
  maintenance)
• Training required to maintain certification
  requirements
• Insurance to the extent not already made
  available
• (life, health, disability, property,
  fire, and general liability)

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CSC Policy

• Startup
• One time costs incurred either prior to or after
  an award to plan, prepare for, and assume the
  operation of a Program, Function, Service, or
  Activity (PFSA).
• Must be reasonable and necessary and pay for
  activities that are not provided in the amount
  computed pursuant to Section 106(a)(1) or in the
  Awardees recurring direct or indirect contract
  support costs.
• Do not include operational costs
• Have to be approved from the Awarding Official
  before the costs are incurred in order to be
  paid.
• Examples
• Administrative computer hardware software
• Training and staff development
• Systems development
• Equipment furniture

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CSC Policy- Allocating Funding
       
Pool Brief Description Policy Description Distribution
Pool 1 ISD Fund ISD Fund composed of any funding appropriated for CSCs associated with new and expanded awards. as expeditiously as possible after July 2
Pool 2 "CSC base" (2006 stable funding level) Prior year's "CSC base" or stable funding composed of the total amounts awarded by the BIA in the prior year for direct and indirect CSC. 30 days of apportionment
Pool 3 "CSC increase" (Shortfall Report bottom-up funding) "CSC increase" composed of amounts, if any, appropriated for increases on the prior year "CSC base" to pay additional CSC requirements. 180 days after apportionment
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CSC Policy- Shortfall Report

• Requirements
• Reporting and Documenting
• Amounts of CSC available, needed and requested
• Required data elements for the report are
  outlined

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CSC Policy- Shortfall Report

• November 15th
• Regions and OSG shall provide a report to Central
  Office for the previous fiscal year ended
  September 30.
• Shall be certified as accurate by the Regional
  Finance Management Officer, Regional Director,
  and OSG, respectively.
• Copy of the Regions data and OSGs data shall be
  provided to the awardees within that Region and
  within OSG.
• December 15th
• Any corrections or changes resulting from awardee
  review shall be certified by the Regional FMO and
  by OSG, respectively, and submitted to the
  Central Office.
• February 1st
• CO shall consolidate all reports finalize the
  BIA CSC Shortfall Report and forward to ASIA for
  approval
• May 15th
• Consistent with ISDEA Section 106(c) forward
  Report to Congress

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CSC Implementation Issues

• Shortfall Report (2007 Data)
• Timeliness
• Accuracy and consistency across the Regions
  regarding exclusions, salary data, 477 funds.
• Treatment of Schools within Policy and Report
  (IDC only)
• Lack of understanding of the policy by Regions
  and Tribes
• Over-recoveries (paid more that 100 of total
  CSC) by Regions
• BIA was unable to account for the total FY2007
  appropriation (CO unable to reconcile Regional
  data despite valiant efforts)
• Corrective Actions
• Comprehensive Training Module and Handbook
• Mandatory training for every field staff
  responsible (ongoing)

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CSC Announcements

• BIA CSC FAQs prepared by Workgroup
• Funding Increases
• Ramah Indirect Costs Class Settlement Training
• NCAI Website
• May 13-14 Albuquerque, NM
• June 2-3 Portland, OR
• June 30-1 Minneapolis, MN    
• NBC 50 Rule
• ARRA Issues
• IHS CSC Workgroup Meeting
• June 10-11 Phoenix, AZ