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Indirect Cost Rate Agreement

Indirect Cost Rate Agreement Template for Philippines

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Key Requirements PROMPT example:

Indirect Cost Rate Agreement

"I need an Indirect Cost Rate Agreement for our research institution that will be working on multiple government-funded projects in the Philippines, with separate rate structures for research and training activities, to be effective from January 2025."

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Document background
The Indirect Cost Rate Agreement is a crucial document in Philippine government contracting that establishes the authorized methods for recovering overhead and indirect costs on government projects and grants. This agreement is typically required when organizations regularly conduct business with government agencies and need a standardized approach to indirect cost recovery. It ensures compliance with Philippine procurement laws, particularly RA 9184, and Commission on Audit requirements. The agreement details the approved indirect cost rates, calculation methodologies, applicable base costs, and procedures for rate adjustments. It serves as a reference document for both the government agency and the contractor throughout the contract period, providing clarity on indirect cost recovery and helping prevent disputes over cost calculations.
Suggested Sections

1. Parties: Identification of the contracting parties - typically the government agency and the contractor/organization

2. Background: Context of the agreement, including the purpose and basis for establishing indirect cost rates

3. Definitions: Detailed definitions of terms used in the agreement, including specific cost categories, base periods, and calculation methods

4. Rate Agreement: Specification of the agreed indirect cost rates, applicable base, and period of rates

5. Cost Bases: Definition of direct cost bases used for applying indirect cost rates

6. Rate Types and Applications: Description of types of rates (provisional, predetermined, final) and their application

7. Calculation Methodology: Detailed explanation of how indirect cost rates are calculated

8. Documentation Requirements: Required documentation for supporting indirect cost calculations and claims

9. Audit Rights: Rights and procedures for auditing indirect costs and rates

10. Adjustment Procedures: Procedures for adjusting rates and handling over/under recoveries

11. Term and Termination: Duration of the agreement and conditions for termination

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Special Rate Considerations: Used when specific programs or funding sources require special treatment of indirect costs

2. Multiple Rate Structures: Include when different rates apply to different divisions or cost objectives

3. International Operations: Required when organization has international operations affecting indirect cost allocation

4. Cost Sharing Provisions: Include when there are cost sharing arrangements affecting indirect cost recovery

5. Rate Ceilings: Used when specific programs or sponsors impose maximum indirect cost rate limitations

6. Dispute Resolution: Detailed dispute resolution procedures, recommended for complex agreements

Suggested Schedules

1. Schedule A - Rate Calculation: Detailed calculations showing how indirect cost rates were determined

2. Schedule B - Cost Classification Guide: Guide defining treatment of specific cost elements as direct or indirect

3. Schedule C - Excluded Costs: List of specifically excluded costs from indirect cost pools

4. Schedule D - Special Rate Provisions: Details of any special rates or limitations applicable to specific programs

5. Schedule E - Organization Structure: Organization chart showing departments/divisions covered by the agreement

6. Appendix 1 - Required Certifications: Required certifications from authorized officials regarding indirect cost proposals

7. Appendix 2 - Documentation Requirements: Detailed list of required supporting documentation for indirect cost claims

8. Appendix 3 - Reporting Templates: Standard templates for periodic reporting of indirect cost information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions
















































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Relevant Industries

Government and Public Sector

Education and Research

Non-Profit Organizations

Construction and Infrastructure

Healthcare Services

Information Technology

Defense Contractors

International Development

Engineering Services

Research and Development

Relevant Teams

Finance

Legal

Compliance

Government Relations

Procurement

Project Management

Accounting

Contracts Administration

Business Development

Audit

Relevant Roles

Chief Financial Officer

Government Contracts Manager

Finance Director

Compliance Officer

Contract Administrator

Financial Controller

Grants Manager

Project Manager

Accounting Manager

Procurement Officer

Audit Manager

Cost Accountant

Business Development Manager

Finance Analyst

Legal Counsel

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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