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If an agency has a federally negotiated indirect cost rate, can that serve as the operating cost allocation justification?

April 26, 2017agency allocation COST federally indirect justification negotiated operating rate serve

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If an agency has a federally negotiated indirect cost rate, can that serve as the operating cost allocation justification?

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Yes. If an agency has a federally negotiated indirect cost rate, it can serve as the operating cost allocation justification and should be attached to the budget justification. However, agencies may not request more than 5% in operating costs even if the indirect rate exceeds 5%.