Notice2026-02514
Notice of Indirect Cost Rates
Primary source
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Published
February 9, 2026
Effective
February 9, 2026
Issuing agencies
Commerce DepartmentNational Oceanic and Atmospheric Administration
Abstract
NOAA's Office of National Marine Sanctuaries (ONMS) announces the establishment of new indirect cost rates for the recovery of indirect costs for its component organizations involved in natural resource damage and restoration activities for fiscal year (FY) 2019. NOAA will apply the indirect cost rate for FY2019 as recommended by Empirical Concepts LLP (Empirical) for each of the ONMS component organizations and the dates of implementation in this notice. The public can obtain more information on this rate from the address provided below in the FOR FURTHER INFORMATION CONTACT section.
Full Text
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<title>Federal Register, Volume 91 Issue 26 (Monday, February 9, 2026)</title>
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[Federal Register Volume 91, Number 26 (Monday, February 9, 2026)]
[Notices]
[Pages 5727-5728]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02514]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
Notice of Indirect Cost Rates
AGENCY: Office of National Marine Sanctuaries (ONMS), National Ocean
Service (NOS), National Oceanic and Atmospheric Administration (NOAA),
Department of Commerce (DOC).
ACTION: Notice of indirect cost rates for the Office of National Marine
Sanctuaries Natural Resource Damage Assessments for fiscal year 2019.
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SUMMARY: NOAA's Office of National Marine Sanctuaries (ONMS) announces
the establishment of new indirect cost rates for the recovery of
indirect costs for its component organizations involved in natural
resource damage and restoration activities for fiscal year (FY) 2019.
NOAA will apply the indirect cost rate for FY2019 as recommended by
Empirical Concepts LLP (Empirical) for each of the ONMS component
organizations and the dates of implementation in this notice. The
public can obtain more information on this rate from the address
provided below in the FOR FURTHER INFORMATION CONTACT section.
DATES: This notice is effective on February 9, 2026.
FOR FURTHER INFORMATION CONTACT: Vicki Wedell, NOAA Office of National
Marine Sanctuaries, 1305 East West Highway, Silver Spring, MD 20910, or
240-676-3805, <a href="/cdn-cgi/l/email-protection#e0b689838b89ceb78584858c8ca08e8f8181ce878f96"><span class="__cf_email__" data-cfemail="2f79464c444601784a4b4a43436f41404e4e01484059">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
The Natural Resource Damage Assessment (NRDA) mission of ONMS is to
restore injuries to sanctuary resources caused by the release of
hazardous substances or oil under the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA; 42 U.S.C. 9601 et
seq.) or the Oil Pollution Action of 1990 (OPA; 33 U.S.C. 2701 et
seq.), or physical injuries under the National Marine Sanctuaries Act
(NMSA; 16 U.S.C. 1431 et seq.). NOAA conducts NRDAs as a basis for
recovering damages from responsible parties and uses the funds
recovered to restore injured sanctuary resources.
When addressing NRDA incidents, the costs of the damage assessment
are recoverable from individuals and organizations who are potentially
liable for an incident. Total costs include both direct and indirect
costs. Direct costs are costs for activities that are clearly and
readily attributable to a specific case or other program products. In
contrast, indirect costs reflect the costs for activities that
collectively support ONMS' mission and operations. For example,
indirect costs include general administrative support overheads.
Although indirect costs may not be readily traced back to a specific
direct activity, indirect costs may be allocated to direct activities
using an indirect cost distribution rate.
Consistent with standard Federal accounting requirements, NOAA is
required to account for and report the full costs of its programs and
activities. Further, NOAA is authorized by law to recover reasonable
costs of damage assessment and restoration activities under CERCLA,
OPA, and the NMSA. Within the constraints of these laws, ONMS has the
discretion to develop indirect cost rates subject to its requirements.
II. ONMS's Indirect Cost Effort
NOAA contracted Empirical, who subcontracted with the public
accounting firm Cotton and Company LLP to: (1) evaluate the cost
accounting system and allocation practices; (2) recommend the
appropriate indirect cost allocation methodology; and (3) determine the
indirect cost rates for the organizations that comprise ONMS.
Empirical concluded that the cost accounting system and allocation
practices of ONMS component organizations are consistent with Federal
accounting requirements. Empirical also determined that the most
appropriate indirect allocation method was the Direct Labor Cost Base
for all ONMS component organizations. The Direct Labor Cost Base is
computed by allocating total indirect costs over the sum of direct
labor dollars plus the application of NOAA's leave surcharge and
benefits rates to direct labor. Empirical further assessed that the
indirect cost rates for the ONMS component organizations were fair and
equitable. A report on Empirical's assessment and their determination
can be obtained from the person identified in FOR FURTHER INFORMATION
CONTACT section.
III. ONMS Indirect Cost Rate and Policies for Fiscal Year 2019
NOAA will apply the indirect cost rate for FY2019 as recommended by
Empirical for each of the ONMS component organizations as provided in
the following table:
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FY 2019
indirect
ONMS component organization rate
(percent)
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Florida Keys National Marine Sanctuary...................... 14.01
Greater Farallones National Marine Sanctuary................ 4.28
All other National Marine Sanctuaries....................... 0.39
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NOAA will apply the FY2019 rates identified in this notice to all
damage assessment and restoration case costs incurred from October 1,
2019 until present, using the Direct Labor Cost base allocation
methodology. For cases that
[[Page 5728]]
have settled and for cost claims paid prior to the effective date of
the FY in question, NOAA will not re-open any resolved matters for the
purpose of applying the rates in this notice. For cases not settled and
cost claims not paid prior to the effective date of the FY in question,
NOAA will recalculate costs using the rates in this notice. Where a
responsible party has agreed to pay costs using previous year's
indirect rates, but has not yet made the payment because the settlement
documents are not finalized, the costs will not be recalculated. NOAA
will use the FY2019 rates for future fiscal years until year-specific
rates are developed.
Authority: 42 U.S.C. 9601 et seq.; 33 U.S.C. 2701 et seq.; 16
U.S.C. 1431 et seq.
John Armor,
Director, Office of National Marine Sanctuaries, National Ocean
Service, National Oceanic and Atmospheric Administration.
[FR Doc. 2026-02514 Filed 2-6-26; 8:45 am]
BILLING CODE 3510-NK-P
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