On May 8, the Department of Energy (DOE) released three new Policy Flashes introducing Indirect Cost rate (IDC) caps for nonprofit organizations, for-profit entities, and state and local governments.
What You Need to Know:
- These new DOE IDC caps apply to the following entity types on new awards:
- 15% IDC cap for nonprofits
- 10% IDC cap for state and local governments
- 15% IDC cap for for-profits
- The policy does not override negotiated F&A agreements, but the DOE will only reimburse up to the capped rate.
- These new Policy Flashes do not apply directly to Institutions of Higher Education. DOE issued a Policy Flash on April 11th imposing a 15% cap on IDC costs for new awards to Institutions of Higher Education. This particular policy is currently under a temporary restraining order and is not being enforced at this time.
- The revised IDC caps have important implications for budgeting when proposals involve subawards or collaborations. When preparing DOE proposals, please ensure that any included budgets for nonprofits, for-profits, or state/local government partners comply with the applicable IDC rate caps.
For More Information:
Contact your DCG Officer