NICRA stands for Negotiated Indirect Cost Rate Agreements (NICRA). The NICRA is a document published to reflect an estimate of indirect cost rate negotiated between the Federal Government and a Grantee/Contractor’s organization which reflects the indirect costs (facilities and administrative costs) & fringe benefit expenses incurred by the organization that will be the same across all the agencies of the United States. See infographic.
Indirect costs, which can include rent for a partner’s corporate headquarters, lobbying costs, and
other miscellaneous expenses can easily exceed 25% of an organization’s total award.
USAID issues NICRAs as the cognizant agency for over 300 organizations and companies, many of which are large multinational organizations headquartered outside the United States. In fiscal year 2022, USAID issued $14.94 billion across 5,788 transactions,” according to USAspending.gov. “Despite the increases in USAID’s operations over the years, the number of staff reviewing USAID-issued NICRAs has remained flat at seven individuals for more than five years.”
Indirect costs, which can include rent for a partner’s corporate headquarters, lobbying costs, and other miscellaneous expenses can easily exceed 25% of an organization’s total award. USAID is responsible for renegotiating these rates every year and ensuring that USAID’s partners are limiting their indirect costs to the absolute minimum. SEE HERE FOR ADDITIONAL INFORMATION.
When can an organization use the 10% de minimis rate for indirect costs? – See Infographic