Section 1000.139 - Will the established indirect cost rates always apply to new AFAs?No, the established indirect cost rates will not always apply to new AFAs.
(a) A Tribe's/Consortium's existing indirect cost rate should be reviewed and renegotiated with the inspector general or other cognizant agency if: (1) Using the previously negotiated rate would include the recovery of indirect costs that are not reasonable, allocable, or allowable to the relevant program; or(2) The previously negotiated rate would result in an under-recovery by the Tribe/Consortium.(b) If a Tribe/Consortium has a fixed amount indirect cost agreement under OMB Circular A-87, then: (1) Renegotiation is not required and the duration of the fixed amount agreement will be that provided for in the fixed amount agreement; or(2) The Tribe/Consortium and bureau may negotiate an indirect cost amount or rate for use only in that AFA without the involvement of the inspector general or other cognizant agency.