[Federal Register Volume 62, Number 7 (Friday, January 10, 1997)]
[Notices]
[Pages 1468-1470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-573]


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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs


Distribution of Fiscal Year 1997 Contract Support Funds

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of method for distribution and use of Fiscal Year (FY) 
1997 contract support funds (CSF).

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SUMMARY: The purpose of this Announcement is to issue the Bureau of

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Indian Affairs (BIA) administrative instructions for the implementation 
of Public Law (Pub. L.) 93-638 as amended by Pub. L. 103-413, the 
Indian Self-Determination Act Amendments of 1994 (the Act). These 
administrative instructions are designed to provide BIA personnel with 
assistance in carrying out their responsibilities when distributing 
CSF. These instructions are not regulations establishing program 
requirements.

DATES: The CSF Needs Report for ongoing/existing contracts and annual 
funding agreements are due on July 15, 1997. The CSF Needs Reports for 
new and expanded contracts and annual funding agreements are due 
periodically throughout the year as the need arises. All new and 
expanded contracts and annual funding agreements starting between 
October 1, 1996, and January 1, 1997, will be considered to have a 
January 1, 1997, start date.

ADDRESSES: Bureau of Indian Affairs, Division of Self-Determination 
Services, 1849 C Street, N.W., MS-4603-MIB, Washington, D.C. 20240.

FOR FURTHER INFORMATION CONTACT: Jim Thomas, Chief, Division of Self-
Determination Services, (202) 208-5727.

SUPPLEMENTARY INFORMATION: A total of $95,829,000 is available for 
contract support requirements (excluding construction requirements) 
during FY 1997. Congressional language sets a ceiling on the amount of 
CSF available in FY 1997. Of this amount $90,829,000 is available for 
contract support requirements associated with FY 1997 costs of ongoing 
self-determination and self-governance awards for programs under 
contract prior to FY 1997. The balance of $5,000,000 is provided to 
continue the Indian Self-Determination (ISD) Fund to provide contract 
support for new and expanded contracts and annual funding agreements 
first entered into in FY 1997. Each BIA Area Office and the Office of 
Self-Governance (hereinafter office) has the responsibility for tribes 
located within their respective area to work with the tribes in 
identifying new and expanded contracts and annual funding agreements 
and reporting this information to the Division of Self-Determination 
Services as specified in this announcement. CSF shall be added to 
awards made under Sec. 102 and Title IV of the Indian Self-
Determination and Education Assistance Act, as amended. Awards made 
under the authority of Sec. 103 of this Act shall not receive CSF to 
meet indirect costs, as contract support provisions do not apply to 
Sec. 103 grants.

Basis for Payment of CSF

    BIA will utilize tribal indirect cost rates to determine the amount 
of CSF to be paid to eligible contracting tribes and tribal 
organizations and eligible self-governance tribes and tribal consortia. 
In determining legitimate indirect cost requirements each area and 
self-governance director should fund only those contracting or 
compacting tribal organizations that have an approved indirect cost 
rate for either FY 1995, 1996 or 1997 or indirect cost proposal 
currently under consideration by the Office of Inspector General. In 
those instances where a tribe or tribal organization has more than one 
approved rate or a current proposal under consideration by the Office 
of the Inspector General, the director should use the most current rate 
or pending proposal in determining the amount to award. For those 
tribes who are unable for good cause to negotiate an indirect cost 
rate, area contract officers may negotiate reasonable lump sum amounts 
with these tribes.

Ongoing/Existing Contracts/Annual Funding Agreements--Method of 
Distribution

    Each area office will submit CSF need reports to the Central Office 
for ongoing contracts and annual funding agreements by July 15, 1997. A 
final distribution of contract support will be made on or about July 
31, 1997. CSF will be provided to each office from the remaining 
available $90,829,000 based on these reports. If these reports indicate 
that $90,829,000 will not be sufficient to cover the entire need, this 
amount will be distributed pro rata, so that all contractors and 
compactors receive the same percentage of their reported need.
    Should the amount provided for these existing contracts and annual 
funding agreements prove insufficient, a tribe or group of tribes may 
wish to reprogram funds to make up deficiencies necessary to recover 
full indirect costs. This tribal reprogramming authority is limited to 
funds for programs located in the Tribal Priority Allocation (TPA) 
portion of the tribal budget. Congressional language does not provide 
authority for the Bureau to reprogram funds from other Bureau programs 
to meet any CSF shortfalls.
    For programs other than TPA, tribes are not constrained from 
recovering full indirect costs from within the overall program and 
contract support funds awarded for each program.
    Each office will be suballotted 75 percent of the total amount 
which was provided in FY 1996, as soon as possible. Accordingly, each 
office should then award 75 percent of required contract support to 
each contract/compact meeting the criteria established below.
    All contractors and self-governance tribes/consortia with either a 
FY 1995, 1996, or 1997 approved indirect cost rate, current indirect 
cost proposal, or FY 1997 approved lump sum amount are eligible for 75 
percent of the appropriate total amount to be paid with the first 
allotment of CSF in FY 1997. After the second allotment of CSF is made 
(approximately July 31, 1997) all contractors and self-governance 
tribes/consortia should again receive their pro rata share of CSF, 
based on the amount provided at that time.
    An ongoing/existing contract or annual funding agreement is defined 
as a BIA program operated by the tribal contractor on an ongoing basis 
which has been entered into prior to the current fiscal year. An 
increase or decrease in the level of funding from year to year for such 
contracts or annual funding agreements would not affect the designation 
of such contracts or annual funding agreements as being ongoing. An 
assumption of additional BIA program responsibilities would be required 
to trigger a change in designation.

Method of Distribution for New and Expanded Contracts/Annual Funding 
Agreements

    Each office will submit CSF need reports to the Central Office for 
new and expanded contracts and annual funding agreements periodically 
throughout the year as new contracts or annual funding agreements are 
awarded or existing contracts or annual funding agreements are 
expanded. Funds will be provided to the offices as these reports are 
received and will be taken from the $5,000,000 ISD Fund. These funds 
will be distributed on a first-come-first-serve basis at 100 percent of 
need using the office reports.
    In the event the $5,000,000 is depleted, new or expanded contracts 
or annual funding agreements awarded after this fund has been exhausted 
will not be provided any CSF during this fiscal year. Requests received 
after this fund has been exhausted will be considered first for funding 
in the following year, from funds appropriated for this purpose. It 
should be noted that there were a number of FY 1996 new and expanded 
contracts and annual funding agreements which were not funded during FY 
1996, and, in line with the process outlined herein, they will be given 
priority for funding over

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FY 1997 new and expanded contracts and annual funding agreements.

Priority of Funding for New and Expanded Contracts/Annual Funding 
Agreements

    Contract support will be awarded from the ISD fund to all new and 
expanded contracts/annual funding agreements based on the start date of 
the award, and the application date, on a first-come-first-serve basis. 
An Indian Self-Determination Fund ``applicant roster'' shall be 
maintained, which shall list, in order of priority, the name of the 
tribe or tribal organization, the name of the program, the start date, 
the application date, the amount of program funds, the program cost 
code(s), the amount of contract support funds required, and the date of 
approved Indirect Cost Rate agreement or lump sum agreement.
    ``Start date'' means the date or commencement of operation of the 
new or expanded portion of the contract or annual funding agreement by 
the tribe/consortium or tribal organization. However, because the Self-
Determination Act provides that contracts/annual funding agreements 
will be on a calendar year basis unless otherwise provided by the 
tribe, any start date on or prior to January 1 of each year shall be 
considered a January 1 start date.
    ``Application date'' shall be the date of the request by the tribe 
which includes: (1) a tribal resolution requesting a contract or annual 
funding agreement; (2) a summary of the program or portion thereof to 
be operated by the Tribe/consortium or Tribal organization; and (3) a 
summary identifying the source and amount of program or services funds 
to be contracted or included in an annual funding agreement and 
contract support requirements. In the event that two tribes or tribal 
organizations have the same start date and application date, then the 
next date for determination of priority shall be the date the fully 
complete application was received by the BIA.
    If all of the above are equal, and if funds remaining in the ISD 
fund are not adequate to fill the entire amount of each award's 
contract support requirement, then each will be awarded a proportionate 
share of its requirement and shall remain on the Indian Self-
Determination Fund Roster in appropriate order of priority for future 
distributions.
    New contract/annual funding agreement is defined as the initial 
transfer of a program, previously operated by the BIA to the tribe/
consortium or tribal organization.
    An expanded contract/annual funding agreement is defined as a 
contract/annual funding agreement which has become enlarged, during the 
current fiscal year through the assumption of additional programs 
previously operated by the BIA.

Criteria for Determining CSF Need for New and Expanded Contracts/Annual 
Funding Agreements

    CSF for new and expanded contracts/annual funding agreements will 
be determined using the following criteria:
    1. All contracts/annual funding agreements initially entered into 
in FY 1997 that transfer the operation of a program that was operated 
by the BIA in the previous fiscal year to the tribe. (TPA programs 
started or expanded in FY 1997 that are a result of a change in 
priorities from other already contracted programs are not considered 
new or expanded.)
    2. All expansions of existing contracts/annual funding agreements 
that call for the tribe to assume more or additional programs 
previously operated by the BIA.
    3. New and expanded program assumptions under Self-Governance 
annual funding agreements.

Criteria for Determining CSF Need for Ongoing/Existing Contracts/Annual 
Funding Agreements

    CSF for ongoing and existing contracts/annual funding agreements 
will be determined using the following criteria:
    1. All TPA contracted programs or those programs included in annual 
funding agreements in FY 1996 and continued in FY 1997, including 
contracted or annual funding agreement programs moved to TPA in FY 
1997, such as New Tribes, HIP, and Road Maintenance.
    2. Direct program funding increases due to inflation adjustments 
and general budget increases.
    3. TPA programs started or expanded in FY 1997 that are a result of 
a change in priorities from other already contracted/annual funding 
agreement programs.
    4. CSF differentials associated with tribally-operated schools that 
receive indirect costs through the application of the administrative 
cost grant formula. These differentials are to be calculated in 
accordance with the criteria prescribed in the Choctaw decision dated 
September 18, 1992, issued by the Contracting Officer, Eastern Area 
Office. Copies of this decision can be obtained by calling the 
telephone number provided in this announcement. Tribes that received 
differential funding under this category in FY 1996 are eligible to 
receive funding from this account in FY 1997. Tribes that did not 
receive differential funding under this category in FY 1996 are 
eligible for funding from the ISD fund.
    5. CSF will be distributed to the Office of Self-Governance for 
ongoing annual funding agreements, on the same basis as area offices. 
All additional CSF requirements will be met from the ISD fund in 
accordance with the criteria established above.
    6. Funds available for Indian Child Welfare Act (ICWA) programs or 
reprogrammed from ICWA to other programs will be considered ongoing for 
the purposes of payment of contract support costs.
    7. The use of CSF to pay prior year shortfalls is not authorized.
    8. Programs funded from sources other than those listed above that 
were contracted in FY 1996 and are to be contracted in FY 1997 are 
considered as ongoing.

    Dated: December 31, 1996.
Elizabeth L. Homer,
Assistant Secretary--Indian Affairs.
[FR Doc. 97-573 Filed 1-9-97; 8:45 am]
BILLING CODE 4310-02-P