USAID Definitions

How to negotiate your Negotiated Indirect Cost Rate Agreement (NICRA)?

Many implementers are not experienced in NICRA negotiations. We recommend working with a subject matter expert who will help you through the process. Here's an excellent resource: Robert Stross - https://www.robertstrosschartered.net/consulting/

Meanwhile, the NICRA regulations can be found in 2 CFR 200.

  • NICRA - An agreement between an organization and a US government agency on the reimbursement of indirect costs.
  • The agreement is between an implementer and USAID, although some implementers have a NICRA with The Department of State or Department of Health and Human services instead.
  • An organization only has one NICRA with the US government regardless of how many sources of funding it has within the government
  • The lead agency that negotiates the NICRA is called the "cognizant agency".
  • A NICRA is needed when an organization allocates overhead costs across many projects in an equitable fashion