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Are sub-consultants required to have indirect cost rates established through a cognizant audit procedure?

April 26, 2017audit cognizant COST indirect procedure rates sub-consultants

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Are sub-consultants required to have indirect cost rates established through a cognizant audit procedure?

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No. Sub-consultants hired by the prime contractor do not fall under the requirements of Section 23 U.S.C. 112(b)(2)(A) and therefore are not required by that law to obtain an indirect cost rate determined through a cognizant audit procedure.