Indirect Implementation

Indirect Implementation

In February 2019, the City of New York adopted the Health and Human Services (HHS) Cost Policies and Procedures Manual (Cost Manual) to standardize cost allocation practices for HHS contracts and Indirect Cost Rate (ICR) calculations. The Cost Manual is intended to be a living document that is updated from time to time.

The Fiscal Year 2020 Adopted Budget established an ICR Funding Initiative based on the Cost Manual, managed by the Office of Management and Budget and Mayor’s Office of Contract Services through the City Implementation Team (CIT). The CIT established a Provider Work Group to advise on the rollout and implementation of the Funding Initiative.

The details of the ICR Funding Initiative were announced by the CIT and City Council on October 7, 2019, with claiming for indirect cost rates and funding opening on November 18, 2019, and closing on December 31, 2020. This Webpage contains information and resources that the CIT shared with the sector throughout the ICR Funding Initiative. While the Funding Initiative is now closed, organizations should continue to consult the Cost Manual to ensure that their human services cost allocations align with City guidelines.

ICR Claiming Closed December 31, 2020

Providers that received an Accepted ICR for Fiscal Year 2020 have an ICR valid through Fiscal Year 2022 (June 30, 2022). Providers that received an Accepted ICR in Fiscal Year 2021 have an ICR valid through Fiscal Year 2023 (June 30, 2023). Providers that did not apply for or receive an Accepted ICR from the City by December 31, 2020 have an Accepted ICR of 10% de minimis. This default rate is effective beginning Fiscal Year 2021 and valid through Fiscal Year 2023.

FY20 and FY21 ICR Funding Amendments

For providers with Delta Templates approved in Fiscal Years 2020 or 2021, the City will be issuing ICR Amendments through PASSPort, the City’s Procurement and Sourcing Solutions Portal. Additional funding through an ICR Amendment may only be used by a provider for indirect costs. Providers may contact their contracting agency for questions about their amendment.  Please contact help@mocs.nyc.gov for questions about PASSPort. For more information about the implementation of FY21 funding, please consult this webinar that includes Initiative updates and answers to questions received from providers.

Using an Accepted ICR and Budget Modifications

We have received a number of questions regarding the use of budget modifications to fund Accepted ICRs. We offer the following tips and information:

  • A provider may use its Accepted ICR to develop its HHS contract budget(s) pursuant to the Accepted ICR validity dates provided above.
  • For budgets where providers have surplus funding in their direct costs, they may request a budget modification to reallocate funds to their indirect costs, up to their Accepted ICR.
  • Providers do not need to wait for registration of their ICR Amendment in order to request a budget modification within its existing budget.
  • In exercising a budget modification request, providers may use the HHS Accelerator Financials automatic budget modification, which allows for expedited budget modifications up to 10% (cumulative) of the total contract value without preapprovals or delays in invoicing.
  • Budget Modifications may be made between categories of Personnel Services (PS) and Other Than Personnel Services (OTPS), maximizing budget flexibility.

Please see the following instructional materials on budget modifications:

Using an Accepted ICR in RFP Proposals

Effective immediately, providers with an Accepted Indirect Cost Rate (ICR), as defined by The City of New York’s Health and Human Service Cost Policy and Procedures Manual (Cost Manual), may use their Accepted ICRs in RFP proposals. The following language will now be standard in future Health and Human Services RFPs, and released status RFPs in PASSPort will be amended to include this new language. If an RFP is missing this language, please notify the designated agency contact.

“All price and budget proposals should be prepared in accordance with The City of New York’s Health and Human Service Cost Policy and Procedures Manual (Cost Manual). For the purpose of responding to this solicitation, proposers may budget up to an Accepted       Indirect Cost Rate or use the 10% de minimis Indirect Cost Rate.”

Additionally, the following language will be added to the Cost Manual and has been provided to contracting agencies:

“If an Agency is considering the values of Accepted ICRs as part of the proposal evaluation process, it must explicitly state this evaluation criteria in the RFP. As long as the expected contract value and service level(s) are standard across awards, variations in Accepted ICRs should not impact evaluation of proposals, unless explicitly indicated otherwise by the Agency in the RFP.” 

Please contact the solicitation’s issuing agency with questions about content included in the RFP or your organization's proposal.

For technical assistance with PASSPort, please email our MOCS Service Desk at help@mocs.nyc.gov.

Archive of Resources

Archive of Email Communications

Over the course of this initiative, the CIT sent weekly emails to the sector. In total, more than 60 emails were sent between September 2019 and December 2020. Please find below an archive of emails.