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

Allocation of Indian Self-Determination Funds
Against Contract Support Costs
For New and Expanded Awards

The purpose of the allocation of funding needed for new and expanded Public Law (P.L.) 93-638 compacts and contracts is to provide an equitable allocation of available resources.  Allocation of Indian Self-Determination (ISD) funding by this methodology is intended to allow all new or expanded programs to be funded at the overall Indian Health Service (IHS) contract support cost (CSC) level of need funded (LNF) for all awardees.

The ISD fund will be paid according to the following methodology:

  1. The CSC requirement to fund a new or expanded contract will be negotiated according to the guidance provided in paragraphs 6-3.2A,B, and C of this chapter.  (See pages 5-9).
  2. The full startup and pre-award cost need negotiated with the awardee for all requests received prior to July 3 of the fiscal year (FY) (or on or before August 17 in the case of a Final Offer from a Title V compactor), will first be fully funded.  If the ISD Fund is not sufficient to fully fund the total startup/pre-award costs of all ISD requests negotiated, then the amount available in the ISD Fund will be proportionately divided against the total negotiated startup and pre-award costs of all negotiated requests.
  3. After funding startup and pre-award costs for each awardee having an ISD request for the current FY that was submitted prior to July 3 (or on or before August 17 in the case of a Final Offer from a Title V compactor), the total remaining CSC need associated with the new or expanded programs, functions, services, or activities (PFSA) (direct and indirect CSC) will be paid up to the average CSC LNF of all Tribes as reflected in the current Indian Health Service CSC Shortfall Report.
  4. If ISD funding is insufficient to fund all ISD requests up to the average CSC LNF of all Tribes, each awardee shall be funded at the same percentage of their CSC need associated with the new or expanded PFSA until all ISD funds are exhausted.
  5. Any shortfall remaining for an ISD awardee will be paid to the awardee, along with all other awardees having such shortfalls, pursuant to Pool No. 3, to the extent funds are available for ongoing CSC shortfalls, in accordance with Manual Exhibit 6-3-E.
  6. If ISD funds remain after all new or expanded awards have been funded as described in paragraphs (2) and (3) above, then unless prohibited by law, excess ISD funds would be made available to all Tribes with a CSC shortfall under Pool Number 3 in accordance with Manual Exhibit 6-3-E.

An example of this allocation methodology is provided below.

The following example assumes that eight Tribes have approved ISD Fund requests for the FY totaling $7.5 million after the payment of their startup and pre-award costs; the ISD appropriation still has a balance of $7 million; and the average CSC LNF provided to all Tribes based on the current IHS CSC Shortfall Report is 72.8 percent.

All awardees would be paid their full pre-award and startup costs, and each awardee would receive 72.8 percent of their remaining negotiated ISD need.  Because there was still a balance of $1,540,000 remaining, this amount would be moved to Pool No. 3 for allocation as CSC Shortfall Funds.

Computation of ISD payment for Sample Fiscal Year

Negotiated ISD Request
ISD Percentage
ISD Payment
Tribe 1 $1,000,000. 72.8% $728,800.
Tribe 2 2,550,000. 72.8% 1,856,400.
Tribe 3 500,000. 72.8% 364,000.
Tribe 4 200,000. 72.8% 145,600.
Tribe 5 1,165,000. 72.8% 848,120.
Tribe 6 450,000. 72.8% 327,600.
Tribe 7 435,000. 72.8% 316,680.
Tribe 8 1,200,000 72.8% 873,600.
Total $7,500,000.    $5,460,000.
ISD Appropriation       $7,000,000.
Balance available for Pool No.3.       $1,540,000.

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