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Division of Cost Determination — Office of Acquisition Management Services

The Division of Cost Determination (DCD) has been in existence since 1972 to negotiate and issue indirect cost rates and cost allocation plans on behalf of the Federal Government. These negotiations are based on guidance issued by the Office of Management and Budget (OMB) and the Federal Acquisition Regulation (FAR) for organizations receiving a preponderance of direct Federal funds from the U.S. Department of Labor (DOL). The rates are established in a Negotiated Indirect Cost Rate Agreement (NICRA) for cost reimbursable grants and contracts.

DCD performs four main functions:

  1. Negotiate, issue, and maintain a file of indirect cost rates and cost allocation plans (based on OMB Circular A-87 for State/Local organizations, A-122 for non-profit organizations, and FAR 31.2 for commercial organizations).
  2. Provide cost analysis through Field Pricing Reports (based on FAR 15.404-2) to Contracting Offices in DOL.
  3. Conduct the Audit Resolution process (based on OMB Circular A-50) for indirect costs and cost allocation findings resulting from audit reports issued by DOL's Office of the Inspector General.
  4. Provide liaison, coordination, and technical assistance to federal agencies, DOL personnel, grantees, and contractors on indirect cost issues through formal and informal communication.

For any questions, see our detailed office directory listing below (Appendix III). You may also contact the DCD National Office in Washington, D.C. at (202) 693-4100.




A Guide for Indirect Cost Rate Determination — Applicable to non-profit and commercial organizations

Entire Guide (PDF)

SECTION I: General Information (PDF)

SECTION II: Guidelines for Preparing Indirect Cost Proposal (PDF)

SECTION III: Example Exhibits for Indirect Cost Proposal (PDF)

  • Includes examples for "Certificate of Indirect Costs" and "Cost Policy Statement."

SECTION IV: Common Indirect Cost Problems (PDF)

SECTION V: Questions and Answers (PDF)

APPENDIX I: Example Indirect Cost Rate Agreement — Commercial (PDF)

APPENDIX II: Example Indirect Cost Rate Agreement — Non-profit (PDF)

APPENDIX III: DCD Address Listing (PDF)


Guidance for State/Local Governments

Based on the cost principles established in OMB Circular A-87, State and local organizations may support the indirect costs that they incurred by submitting an Indirect Cost Rate (ICR) proposal or a Cost Allocation Plan (CAP) to their Federal cognizant agency. The proposals should be submitted no later than six months after the end of the entities fiscal year. If DOL provides the preponderance of funds to the organization, DOL would normally be cognizant. The Division of Cost Determination is responsible for the review and approval of the proposals submitted to DOL.

The proposals must be supported using the documentation cited below (as appropriate). Sample exhibits, for requested workpapers, Cost Policy Statement, and Certificate of Indirect Costs (CAP uses the same format) are available for the ICR. Also available are sample documents for the Cost Policy Statement and the Certificate of Indirect Costs. In addition, there is a link for the HHS ASMB C-10 — implementation guide for OMB Circular A-87, as well as a link for A-87 cost principles.

State Workforce Agencies (SWAs) — Checklists

  1. ICR (PDF)
  2. CAP (PDF)
  3. CAP using FARS (PDF)
  4. CAP using ETA Handbook No. 362 (PDF)

All State/Local Governments organizations except SWAs — Checklists

  1. ICR (PDF)
  2. CAP (PDF)

Sample Exhibits to support an ICR (PDF)

Cost Policy Statement* (PDF)

Certificate of Indirect Costs* (PDF)

Certificate of Cost Allocation Plan* (PDF)

HHS — Implementation Guide — Circular A-87 (PDF)

OMB Circular A-87 — Cost Principles for State/Local Governments

*Applicable to state/local governments