3.11 Indirect Costs
Federal Indirect Cost Rate—Negotiated Agreements
If a Federal awarding agency has approved an indirect cost rate or allocation plan, then another awarding agency must accept the same indirect cost rate or allocation plan, provided the rate or plan is current and based on allocation methods substantially in accord with those set forth in the OMB Uniform Guidance for grant requirements. There are limited circumstances where a Federal agency may deviate from negotiated rates as discussed in 2 C.F.R. § 200.414 (Indirect (F&A) costs).
A non-Federal entity that has a federally negotiated indirect cost rate which has expired during the funding period cannot draw down funds budgeted for indirect costs until a new rate is approved and a copy is submitted to the awarding agency.
Any non-Federal entity that has a federally negotiated indirect cost rate may request a one-time extension of a current negotiated rate for a period of up to four years. This extension request is subject to approval from the cognizant agency for indirect costs. If the extension is granted then the non-Federal entity may not request a rate review until the extension period ends. At the end of the extension period, the non-Federal entity must re-apply to negotiate a new indirect cost rate. Subsequent one-time extensions (up to four years) are permitted if a renegotiation is completed between each extension request.
OJP Specific Tip
A request for a one-time extension of a current negotiated rate may be approved for a period of one year.