Indirect Cost Rates Charged by Contractors or Sub-Grantees

for Federally-Funded Projects

Indirect costs are those costs incurred for a common or joint purpose benefiting more than one cost objective, and not readily assignable to a single project. Costs may be facilities or administrative in nature. Per 2 CFR 200.414 and guidance from the Institute of Museum and Library Services, beginning with grants and contracts awarded from LSTA FY2015 funds, contractors and sub-grantees may charge administrative or indirect rates to LSTA grants and contracts issued by the Missouri State Library.

The Federal Agency Acceptance of Negotiated Indirect Cost Rates will be accepted when supported by official documentation of the accepted negotiated rate
Any non-Federal entity that has never received a negotiated indirect cost rate may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC)

MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and subawards and subcontracts up to the first $25,000. MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward and subcontract in excess of $25,000.
A contractor or sub-grantee may decline to receive payments for administrative or indirect costs.