' Indian Health Manual (IHM) - Part 6, Chapter 3:  Manual Exhibit 6-3-D
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     Indian Health Manual

Part 6, Chapter 3:  Manual Exhibit 6-3-D

Calculating Indirect Costs (IDC) Associated with Recurring
Service Unit Shares and the Contract Support Costs
Amount Based On A Detailed Analysis


(This Exhibit does not cover DCSC.) (Footnote /1)

Assumptions

  1. Tribe A has $600,000 in Recurring Service Unit Shares
  2. Based on a detailed analysis, IHS and the Tribe agree that $15,000 of Recurring Service Unit Shares are associated with IDC in Tribe A's IDC pool, pursuant to Section 6-3.2.E.3.a. of this Chapter
  3. Pass-through & Exclusions = $80,000
  4. Indirect cost rate = 30%

Table 1.  IDC Calculation

Recurring Service Unit Shares amount

$600,000

Less agreed-upon Recurring Service Unit Shares amount associated with costs in the IDC pool

($15,000)

Sub-total Recurring Service Unit Shares for direct costs

$585,000

Less Pass-through & Exclusions

$(80,000)

Total of direct cost base for Recurring Service Unit Shares

$505,000

x 30% IDC rate to determine total IDC need for Recurring Service Unit Shares

$151,500

Table 2.  CSC Calculation Calculation

Total IDC need for Recurring Service Unit Shares

$151,500

Less agreed-upon Recurring Service Unit Shares amount associated with costs in the IDC pool

($15,000)

Indirect CSC amount

$136,500

Tribe B would receive $600,000 from Recurring Service Unit Shares and $132,500 would be funded for indirect CSC.

Footnote 1:  See Indian Health Manual Section 6-3.2.E.

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