[Code of Federal Regulations]
[Title 10, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR600.127]

[Page 111-112]
 
                            TITLE 10--ENERGY
 
              CHAPTER II--DEPARTMENT OF ENERGY (CONTINUED)
 
PART 600--FINANCIAL ASSISTANCE RULES--Table of Contents
 
     Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements With Institutions of Higher Education, Hospitals, 
       Other Non-Profit Organizations and Commercial Organizations
 
Sec. 600.127  Allowable costs.

    (a) General. For each kind of recipient, there is a set of Federal 
principles for determining allowable costs. Allowability of costs shall 
be determined in accordance with the cost principles applicable to the 
entity incurring the costs. Thus, allowability of costs incurred by 
State, local or federally-recognized Indian tribal governments is 
determined in accordance with the provisions of OMB Circular A-87, 
``Cost Principles for State and Local Governments.'' The allowability of 
costs incurred by non-profit organizations is determined in accordance 
with the provisions of OMB Circular A-122, ``Cost Principles for Non-
Profit Organizations.'' The allowability of costs incurred by 
institutions of higher education is determined in accordance with the 
provisions of OMB Circular A-21, ``Cost Principles for Educational 
Institutions.'' The allowability of costs incurred by hospitals is 
determined in accordance with the provisions of Appendix E of 45 CFR 
part 74, ``Principles for Determining Costs Applicable to Research and 
Development Under Grants and Contracts with Hospitals.'' The 
allowability of costs incurred by

[[Page 112]]

commercial organizations and those non-profit organizations listed in 
Attachment C to Circular A-122 is determined in accordance with the 
provisions of the Federal Acquisition Regulation (FAR) at 48 CFR part 
31.
    (b) Indirect costs. Unless restricted by Federal statute or program 
rule, DOE shall provide for the reimbursement of appropriate indirect 
costs.
    (1) DOE shall include an amount for indirect costs in an award only 
if the applicant requests reimbursement of such costs and--
    (i) Submits evidence that a cognizant Federal agency has been 
assigned to establish indirect cost rates for the applicant and 
indicates or provides evidence that--
    (A) A current agreement containing an applicable approved indirect 
cost rate(s) covering all or part of the budget period for which DOE may 
provide funding has been established; or
    (B) An indirect cost proposal has been submitted to the cognizant 
agency in order to establish an applicable approved indirect cost 
rate(s) covering all or part of the budget period for which DOE may 
provide funding; or
    (C) An indirect cost proposal covering all or part of the budget 
period and applicable to the activities for which DOE may provide 
funding will be submitted to the cognizant agency for approval no later 
than three months after the beginning date of the initial budget period 
of the DOE award or, for subsequent budget periods, in accordance with 
any schedule established by the cognizant agency; or
    (ii) If not assigned to a cognizant agency, the applicant includes, 
in the application, data that is current, complete, accurate, and 
sufficient to allow the Contracting Officer to determine a rate(s) for 
indirect costs. If the total approved budget will not exceed $100,000 or 
if the amount requested for indirect costs does not exceed $5,000, DOE 
may waive the requirement for negotiation of a rate and, in lieu 
thereof, provide a reasonable allowance for such costs.
    (2) Indirect cost proposals shall be prepared and submitted in 
accordance with the applicable Federal cost principles and instructions 
from the cognizant agency or from DOE, as appropriate.
    (3) If a subaward under an award or subaward provides for the 
payment of indirect costs, the recipient or subrecipient shall be 
responsible for negotiating appropriate indirect costs, using the cost 
principles applicable to the subrecipient or contractor, unless the 
subrecipient or contractor has negotiated an applicable rate directly 
with DOE or another Federal department or agency. DOE may review and 
audit the procedures a recipient or subrecipient uses in conducting 
indirect cost negotiations.
    (c) Fee or profit. No increment above cost may be paid to a 
recipient or subrecipient under a DOE award or subaward, except for SBIR 
recipients as provided in Sec. 600.181(d)(3). A fee or profit may be 
paid to a contractor providing goods or services under a contract with a 
recipient or subrecipient.