Canceled
by IPA
Policy Memo
03-15
Procurement
Information Circular
June 13, 2003
ALLOCABILITY
AND ALLOWABILITY OF COSTS ASSOCIATED WITH THE INTERGOVERNMENTAL PERSONNEL ACT (IPA)
MOBILITY PROGRAM
PURPOSE: To provide guidance in determining the
reimbursement of allocable indirect costs for all existing and future IPA
agreements.
BACKGROUND:
The IPA Mobility
Program (5 USC Sections 3371 through 3375) provides for the temporary
assignment of personnel between the Federal Government and state and local
governments, institutions of higher education, Indian tribal governments,
federally funded research and development centers, and other eligible
organizations. These assignments are
intended to facilitate cooperation between the Federal Government and the
non-Federal entity through the temporary assignment of skilled personnel. When non-Federal personnel are assigned to a
Federal entity, there is a written agreement which records the obligations and
responsibilities of the Federal and non-Federal entities, including provisions
for reimbursement of costs associated with the program.
The regulations governing the implementation of
the IPA program are contained at 5 CFR Part 334. In addition, the Office of Personnel Management (OPM) has
published guidance regarding various aspects of the IPA program at
http://www.opm.gov/programs/ipa/index.asp. This guidance includes the following
statement:
"Agencies should
not authorize reimbursement for indirect or administrative costs associated
with the assignment. These include
charges for preparing and maintaining payroll records, developing reports on the
mobility assignment, and negotiating the agreement. Other prohibited costs include tuition credits, office space,
furnishings, supplies, staff support and computer time."
The Defense Contract Audit Agency (DCAA)
recently determined that the above guidance from OPM was contrary to CAS
410-50. Specifically, DCAA recommended,
“that the direct labor and associated fringe costs for IPAs remain in the
G&A base to receive its proportionate share of G&A expenses.”
Discussions with OPM disclosed that its guidance
is not intended to prohibit the reimbursement of an allocable share of
contractor indirect costs, including the types of costs specifically listed,
provided such allocation is consistent with the contractor's established cost
accounting practices. OPM is currently
clarifying the guidance to state that (1) the statutory authority establishing
the IPA program does not specifically prohibit reimbursement of indirect costs,
and (2) reimbursement of such costs should be determined by the agency that enters
into the agreement. Based on these
discussions, the Director, Defense Procurement and Acquisition Policy, informed
contracting personal in the Department of Defense “ to provide for the
reimbursement of contractor indirect costs associated with the IPA program.”
GUIDANCE: Procurement personnel
are instructed to provide for the reimbursement of contractor indirect costs
associated with the IPA program, provided such costs are the type that are
allocable and allowable under the regulations that govern the contractor's
cost-based Government contract business (e.g. FAR Part 31 or applicable OMB
Circulars). In addition, when
determining the allocability of indirect costs associated with the IPA program,
contracting officers should assure that any allocation of indirect costs to the
IPA program are commensurate with the benefits being received. For contractors that are performing on
contracts subject to the Cost Accounting Standards, this may necessitate a
special allocation of indirect costs to the IPA program (48 CFR 9904.410-50(j)
and/or 48 CFR 9904.418-50(f)).
The guidance in this PIC should be applied in
determining the reimbursement of allocable indirect costs for all existing and
future IPA agreements, unless such agreement specifically prohibits reimbursement
of indirect costs. If an IPA is going
to allow for reimbursement of allocable indirect costs, the rate should be
negotiated prior to executing the IPA, and should be included in the agreement. If it is necessary to modify an existing IPA
agreement to allow for reimbursement of indirect costs, adequate consideration
should be pursued.
EFFECTIVE DATE: This PIC is effective as dated and shall
remain in effect until canceled or superseded.
HEADQUARTERS CONTACT: Lou Becker, Code HK, (202) 358-4593, e-mail:
lou.becker@nasa.gov.
R. Scott Thompson
Director,
Contract Management Division