Review of Contract Support Cost Policy Changes in BIA CSC Workgroup Brief

1. BIA CSC Workgroup Brief TIBC Meeting – Albuquerque, NM

2. Why change the Contract Support Cost (CSC) Policy? • The CSC Policy was only supposed to remain in effect for 12 months. • Anything that is scheduled to remain in effect over 12 months needs to be incorporated into an Indian Affairs Manual (IAM) Chapter. – During the June 16th– 18thmeeting in Washington, DC, the BIA CSC Workgroup worked on a draft IAM Chapter on contract support costs, as well as a handbook, that will enable Tribes and Awarding Officials understand how CSC is to be distributed.

3. What is the overall intent of changing to an IAM Chapter and possible problems? • Intent is to provide a simple and clear process for tribes, awarding officials and OSG to determine contract support costs. • The BIA is committed to paying 100% contract support costs. • Contract support costs need to be as predictable as possible in order to budget out two years in advance. • Problem - A large number of tribes still have Indirect Cost Rates that are more than four years old as of September 30, 2014. (2015 - 5.07%, 2014 - 37.42%, 2013 – 17.65%, 2012 – 7.52%, 2011 – 3.92%, Older – 28.43%)

4. Sections of the draft IAM Chapter 1. 2. 3. 4. 5. 6. 7. 8. Purpose Scope Policy BIA CSC Workgroup Definitions Pre-Award CSC Startup CSC Direct CSC

5. Sections of the draft IAM Chapter (continued) 9. Indirect CSC Negotiated Lump Sum Amount Simplified Method 10. Overpayment of CSC 11. Underpayment of CSC or Other Adjustments 12. CSC Annual Report to Congress 13. Disputes 14. Effective Date 15. Approvals

6. Items that make up the handbook 1. 2. 3. History of contract support cost policy Definitions Examples of CSC (startup costs, pre-award, DCSC, IDC) Template letter and Excel form requesting startup and pre-award funds Template pre-award notice letter Template letter from awarding official or OSG to tribe giving notice of alleged overpayments 4. 5. 6.

7. Items that make up the handbook (continued) 7. 8. Flowchart for method of determining IDC Examples of how overpayment can occur or what causes overpayment Templates for CSC calculation a. Annual CSC Report b. Choctaw decision school’s CSC calculation c. CSC calculation sheet for Title I tribes d. CSC calculation sheet for Title IV tribes e. 477 CSC calculation 9.

8. Items that make up the handbook (continued) 10. Timeline in chart form for annual CSC report 11. Certification – Single Audit not required 12. Template Findings & Determination (F&D) concerning overpayment 13. Letter from awarding official or OSG to IBC to issue bill of collection

9. Why have so many items in the handbook? • The BIA CSC Workgroup members want to provide as many tools as we can to reduce the potential of Contract Dispute Act (CDA) claims. • The amount of CSC a tribe will receive will be applied consistently across each Region. • Tribes will be able to determine how much CSC they should receive. • If the CSC amount provided by the awarding official or OSG is different, Tribes will be able to have a tool to use during CSC discussions.

10. What are the timelines being discussed? • June 16th– 18th: BIA CSC Workgroup met on the initial draft IAM Chapter. • July 20th: BIA CSC Workgroup held a conference call to discuss the draft IAM and handbook items. • August 7th: BIA CSC Workgroup to provide any additional comments on the draft IAM and handbook items. • August 7th: Jim Mackay to get with BIA to determine next steps.

11. What happens once the work is completed? • BIA staff will present the final draft IAM Chapter and handbook items to ASIA Washburn for review and approval to move forward. • There will be a 90 day comment period once the draft IAM Chapter on contract support costs and handbook is ready for dissemination. • There will possibly be 3 to 4 consultations on the draft IAM and handbook (exact number and locations will be determined by ASIA Washburn).

12. CSC Workgroup Members Primary Tribal Representatives Tribe (BIA Region) Phone Email afredeen@citci.com Amy Fredeen Cook Inlet (Alaska) 907-793-3431 Patty LeBlanc Chitimacha (Eastern) 337-923-4973 pattyl@chitimacha.gov Vickie Hanvey Cherokee (Eastern Oklahoma) 918-931-0745 vhanvey@cherokee.org Lisa D. Drum Omaha (Great Plains) 402-837-5391 x108 ldrum@omahatribe.com Red Lake Band of Chippewa Indians (Midwest) annette.johnson@redlakenation.org 218-679-1800 Annette Johnson Cordell Shortey Navajo (Navajo) 928-871-6033 cshortey@omb.navajo-nsn.gov gregoryaa@pgst.nsn.us Greg Anderson Port Gamble (Northwest) 360-297-2646 sirto@citlink.net Jim Mackay (Co-Chair) Susanville (Pacific) 530-260-3240 Chairman, Eastern Shoshone (Rocky Mt.) darwin.stclair@e-shoshone.com Darwin St. Clair, Jr. 307-332-3532 Rhonda Butcher Potawatomi (Southern Plains) 405-275-3121 rbutcher@potawatomi.org Ysleta del Sur Pueblo (Southwest) Ft. McDermott Paiute Shoshone Tribe (Western) Chairman, Ute Mountain Ute Tribe (TIBC) laustin@ydsp-nsn.gov Linda Austin 915-859-7913 x7725 Valerie Barr 775-532-8259 valerie.barr@fmpst.org ghayes@utemountain.org Gary Hayes 970-564-5600 Olivia Grass Oglala Sioux (TIBC) 605-867-8441 oliviag@oglala.org

13. CSC Workgroup Members Alternate Tribal Representatives Tribe (BIA Region) Phone Email James Angaiak Nunapitchuk (Alaska) 907-527-5665 angaika.james@gmail.com Eastern Band of Cherokee (Eastern) Creek Nation Natural Resource Conservation Commission (Eastern Oklahoma) demastat@nc-cherokee.com DeMakus Staton 828-497-7032 business.mouss7@gmail.com Edward Mouss 918-633-7454 igone@omahatribe.com Jeremy Gone Omaha Tribe (Great Plains) 402-837-5391 Little Traverse Bay Band of Odawa Indians (Midwest) ccarlson@ltbbodawa-nsn.gov Carrie Carlson 231-838-6850 Rachael Arviso Navajo (Navajo) 928-871-6033\6041 rarviso@omb.navajo-nsn.gov Renee Veregge Port Gamble (Northwest) 360-297-6236 reneev@pgst.nsn.us Redwood Valley Rancheria (Pacific) lizstyle3@yahoo.com Elizabeth Hansen 707-485-0361 Need Representative (Rocky Mt.) kasie.nichols@potawatomi.org Kasie Nichols Potawatomi (Southern Plains) 405-275-3121 x1158 pvigil@matisp.net Mescalero Tribe (Southwest) 575-464-9328 Peggy L Vigil Chairman, San Carlos Apache Tribe (Western) Terry Rambler 928-475-2361 x5 trambler@scatui.net

14. CSC Workgroup Members Federal Members BIA Region Phone Email terrence.parks@bia.gov Terry Parks (Co-Chair) OIS - DSD 202-513-7625 hankie.ortiz@bia.gov Hankie Ortiz Deputy Director, OIS 202-208-2874 judy.mitchell@bia.gov Judy Mitchell OIS - DSD 202-208-4506 debra.peebles@bia.gov Debra Peebles Central Office West - DSD 505-563-3677 kirk.meyer@bia.gov Kirk G Meyer Eastern 615-564-6962 yvonne.larocque@bia.gov Yvonne LaRocque Great Plains 605-226-7426 michelle.mccormick@bia.gov Michelle McCormick Midwest 612-725-4588 sunshine.jordan@bia.gov Sunshine Jordan OIS - DSD 202-513-7616 stella.corbin@bia.gov Stella Corbin Rocky Mt. 406-247-7984 kelly.moore@bia.gov Kelly Moore Southern Plains 405-247-1574 thomas.gubatayao@bia.gov Thomas Gubatayao Office of Self Governance 360-699-1010 Office of Self Governance - Alternate nicholas.longley@bia.gov Nick Longley 360-699-1010