Indirect Cost Rate Development & Negotiation

DMP has a qualified team of professionals, experienced in providing consultation on matters related to 2 CFR 220 (universities) and 2 CFR 230 (non-profits), as they pertain to the development and negotiation of an indirect cost rate (non-profits) or facilities and administrative rate (universities). Our firm has extensive experience with identifying appropriate cost pools and bases that help to maximize the organizations cost recovery, while also defining and documenting the costs pools, and preparing an indirect cost rate proposal in accordance with applicable federal requirements.

Functional Space Survey

DMP can also conduct a functional space study, which serves as an integral part of your overall indirect facilities and administrative rate. One of the greatest opportunities for maintaining or enhancing indirect cost recoveries lies in the university's space data. The space data drives the allocation of all space-related costs including building and equipment depreciation, interest expense, and operations and maintenance. Further, efficient space management and utilization are linked to the university’s space data obtained from space surveys.

Space Surveys are required by the federal government under OMB Circular A-21 as part of the University’s Facilities and Administrative (F&A) Rate Proposal. The space survey is an integral and extremely important part of the overall F&A calculation. The survey drives the entire facilities portion of the uncapped F&A rate. Thus, a large portion of the unrestricted indirect cost revenue recovered by the university is dependent on the Space Survey. 

Specifically, space must be functionalized (per A-21) and documented correctly in order to justify the allocation of facilities-related costs to the function of organized research. Inadequate documentation could result in vulnerability to cost disallowances or administrative sanctions from federal agencies, resulting in the reduction of F&A cost recoveries.

University Space Utilization
The university may use the Space Survey to determine space utilization of both current and prospective property and facilities, which promotes efficient management of space and maximizes space utilization in providing service to students, faculty, & staff in the most cost efficient manner possible.

Budgeting and Planning
The university will be able to use the space survey as a basis for studying the overall University cost structure and established rates. The survey can also be utilized to support the university's strategic planning initiatives (programmatic, financial, and physical) from the perspective of space needs, and validate requirements for capital projects.

The final space survey document will identify the square footage of all applicable buildings, by room number, by room type, by department, and by function.