INDIRECT COST ALLOCATION PLAN SERVICES

The City of Charlottesville is soliciting sealed proposals from qualified vendors to provide services for the creation of a Citywide Indirect Cost Allocation Plan once per fiscal year for the duration of the contract. This plan will document overhead costs for all City departments, offices and agencies and aid in the recovery of indirect costs incurred by the City to support and administer Federal and State grant programs used primarily by the Virginia Department of Social Services.

The administration of federal grants and contracts usually requires the expenditure of resources of various organizations within city government. The Federal Office of Management and Budget (OMB) 2 CFR Chapter II, Part 200 "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (hereby referred to as 2 CFR II.200) was issued to meet an expressed need for a more uniform approach to the problem of determining costs of federally aided programs. The OMB Uniform Guidance provides principles and standards for determining indirect costs applicable to federal grants and contracts with state and local governments.

The charging of joint or common costs against federal or state grants and contracts requires the prior preparation of an indirect cost allocation plan. This plan must, in some cases, be successfully negotiated with applicable federal cognizant agency or state agencies. All are subject to single audit. The City must prepare indirect cost rate proposals which are subject to negotiation and/or audit by program agencies.