2. Contract Support Costs
Department of the Interior Bureau of Indian Affairs Ron Demaray - Presenter

3. Indian Self-Determination and Education Assistance Act (ISDEAA) P. L
P.L Enacted January 4, 1975 (Signed by President Gerald Ford)
Gave T/TOs Authority to contract with DOI and DHEW (DHHS) for direct operation of programs serving their tribal members.
P.L
1988 Amendments Passed October 5, 1988
Simplified the ISD contracting process and facilitated the assumption of IHS programs by tribal governments. Introduced CSC provisions at Section Now §5325.

4. Indian Self-Determination and Education Assistance Act (ISDEAA) P. L
§5302. Congressional declaration of policy
(a) Recognition of obligation of United States
Congress… recognizes the obligation of the United States to… Indian people for self-determination by assuring maximum Indian participation in… Federal services to Indian communities so as to render such services more responsive to the needs and desires of those communities.
(b) Declaration of commitment
Congress declares its commitment… to, individual Indian tribes… through the establishment of a meaningful Indian self-determination policy which will permit an orderly transition from the Federal domination of programs… to effective and meaningful participation by… Indian people in the planning, conduct, and administration of those programs and services. [T]he United States is committed to supporting and assisting Indian tribes in the development of strong and stable tribal governments, capable of administering quality programs and developing the economies of their respective communities.

5. PROMULGATION OF REGULATIONS - 1
Indian Self-Determination and Education Assistance Act (ISDEAA) P.L
PROMULGATION OF REGULATIONS - 1
18 months to issue regulations
Directed use of Negotiated Rulemaking
BIA and IHS met with Tribes
DOI & HHS revised the Final Rule
Initial effort to draft Regulations ended up as a total failure
Congress chose to amend P.L again…

6. Indian Self-Determination and Education Assistance Act (ISDEAA) P. L
1994 Amendments Passed October 25, 1994
Titled “Contract Reform Act of 1994”
Title I significantly Amended P.L and the amendments,
Intended to limit the inappropriate exercise of discretion by the DOI and HHS
Limited the promulgation of regulations
Implements, by statute, many of the areas that had been subjects for regulations under 1988 Amendments
Model Contract – specifies terms of P.L Contracts entered into between U.S. and Indian T/TOs

7. 25 C.F.R. Part 900 – Title I Regulations
PROMULGATION OF REGULATIONS - 2
18 months to issue regulations
Directed use of Negotiated Rulemaking
1994 Amendments restricted areas in which regulations could be developed
Final Joint Rule Implementing P.L , the Indian Self-Determination Contract Reform Act of 1994 published in Federal Register JUNE 24, 1996
Final Rule – 25 C.F.R. Part 900 – became effective August 23, 1996

8. 25 C.F.R. Part 1000 – Title IV, Self-Governance Regulations
PROMULGATION OF REGULATIONS - 3
Self-Governance started as a demonstration project within the IHS under P.L in 1988
P.L amendments expanded Self-Governance authority and made it permanent in the BIA in 1994
P.L Permanent Self-Governance Authority in the IHS in 2000 (42 CFR…).
CSC authority is the same for
Title IV, Title V and Title I

9. Bureau of Indian Affairs Contract Support Cost Policy
Part 13, Chapter 7,
INDIAN AFFAIRS MANUAL
Indian Self-Determination Contract Support Costs

10. Indian Health Service Contract Support Cost Policy
Part 6, Chapter 3,
INDIAN HEALTH MANUAL
Contract Support Costs

11. Contract Support Cost Policy
BIA Part 13, Chapter 7 AUTHORITY
Statute & Regulations
25 U.S.C. §§ 5301 et seq. ISDEAA
25 CFR part 900
25 CFR Part 1000
IHS Part 6, Chapter 3 AUTHORITY
Title I of the ISDEAA, 25 U.S.C. §§
Title V of the ISDEAA, 25 U.S.C. §§

12. P.L. 93-638, Indian Self-Determination and Education Assistance Act
25 U.S.C. § 5325(a)(1)- Secretarial Amount
The amount of funds provided under the terms of self- determination contracts entered into pursuant to this [Act] shall not be less than the appropriate Secretary would have otherwise provided for the operation of the programs or portions thereof for the period covered by the contract, without regard to any organizational level within the Department of the Interior or the Department of Health and Human Services, as appropriate, at which the program, function, service, or activity or portion thereof, including supportive administrative functions that are otherwise contractible, is operated.

13. P.L. 93-638, Indian Self-Determination and Education Assistance Act
25 U.S.C. § 5325(a)(2) – Contract Support
There shall be added to the amount required by paragraph (1) contract support costs which shall consist of an amount for the reasonable costs for activities which must be carried on by a tribal organization as a contractor to ensure compliance with the terms of the contract and prudent management, but which:
normally are not carried on by the respective Secretary in his [or her] direct operation of the program; or
are provided by the Secretary in support of the contracted program from resources other than those under contract.

14. P.L. 93-638, Indian Self-Determination and Education Assistance Act
25 U.S.C. § 5325(a)(3) – Contract Support
(1) The contract support costs that are eligible costs for the purposes of receiving funding under this [Act] shall include the costs of reimbursing each tribal contractor for reasonable and allowable costs of -
a) direct program expenses for the operation of the Federal program that is the subject of the contract, and
b) any additional administrative or other expense related to the overhead incurred by the tribal contractor in connection with the operation of the Federal program, function, service, or activity pursuant to the contract, except that such funding shall not duplicate any funding provided under [25 U.S.C. § 5325(a)(1)].

15. P.L. 93-638, Indian Self-Determination and Education Assistance Act
25 U.S.C. § 5325(a)(3) – Renegotiation
(2) On an annual basis, during such period as a tribe or tribal organization operates a Federal program, function, service, or activity pursuant to a contract entered into under this [Act], the tribe or tribal organization shall have the option to negotiate with the Secretary the amount of funds that the tribe or tribal organization is entitled to receive under such contract pursuant to this paragraph.

16. P.L. 93-638, Indian Self-Determination and Education Assistance Act
25 U.S.C. § 5325(a)(5) – Startup Costs
(2) Subject to paragraph (6), during the initial year that a self-determination contract is in effect, the amount required to be paid under paragraph (2) shall include startup costs consisting of the reasonable costs that have been incurred or will be incurred on a one time basis pursuant to the contract necessary –
(1) to plan, prepare for, and assume operation of the [PFSA] that is the subject of the contract; and
(2) to ensure compliance with the terms of the contract and prudent management.

17. P.L. 93-638, Indian Self-Determination and Education Assistance Act
25 U.S.C. § 5325(a)(6) – Pre-Award Costs
Costs incurred before the initial year that a self- determination contract is in effect may not be included in the amount required to be paid under paragraph (2) if the Secretary does not receive written notification of the nature and extent of the costs prior to the date on which such costs are incurred.

18. P.L. 93-638, Indian Self-Determination and Education Assistance Act
Federal Cost Principles
OMB Circulars A-122 or A-87, now 2 CFR Part 200
Describe allowable direct and indirect and Costs and a process for developing Allocation Plans and IDC Proposals
BIA & IHS CSC Policies & Exhibits

19. UNRESOLVED ISSUES: BIA- DCSC @ 18% - Not actual costs.
BIA- Unilaterally determines what funds are not eligible for IDC.
IHS- Duplication
Categorical vs. Funding
IHS 97/3 Policy alternative
IHS- CSC on Third Party Revenue

20. Managing Contract Support Costs
Tribes should spend their BIA (IHS) funding first
Remember Pre-Award & Startup any time you expand your Programs
DCSC is driven by BIA (IHS) salaries
Manage pass-through & exclusions
BIA (IHS) CSC Workgroups

21. Contract Support Cost Education
BIA Website:
IHS Website:
Brief Statutory Overview: (6 minutes)
Key Definitions: (6.5 minutes)
Direct Contract Support Costs: (17 minutes)
Indirect Contract Support Costs: (22.5 minutes)
New Policy Changes (Oct. 2017): (5 minutes)

22. Demaray Consulting, LLC.
25039 North 50th Avenue, Phoenix, AZ
Ph. (240)
Self-Determination
Self-Governance
Contract Support Costs
Indirect Costs
Direct Service Tribes
Tribal Consultation
Technical Assistance