Skip to main content

Indirect Cost Negotiations

PSC offers a full range of top-level review and negotiation services for indirect cost rate proposals and cost allocation plans associated with Federal grants and contracts.


PSC reviews grantee's indirect cost rate proposals and negotiates rates and related adjustments on behalf of customer agencies to ensure federal funds recipients are spending efficiently and are in compliance with both federal regulations and established guidelines and best practices. Using eFlow, PSC automates the review, negotiation and approval of indirect cost rate proposals and annual statewide cost allocation and public assistance cost allocation plans. PSC's professional negotiators are dedicated to the unique requirements associated with the various indirect costs associated with federal grants and contracts to state, local, and tribal governments, colleges and universities, hospitals and non-profit organizations.

Services offered include:

  • Professional negotiators review grantee indirect cost rate proposals and state cost allocation plans to ensure rates are both appropriate and compliant with grant terms and federal regulations
  • Indirect cost management training for both customer agencies and grantees, based on the most up to date uniform guidance and industry best practices
  • Audit resolution on behalf of HHS Office of the Inspector General (OIG) to negotiate overpayment settlements with colleges and universities, and non-profit organizations
  • Internal review and determination of statewide cost allocation plan overpayments

Did You Know?

  • The Office of Management and Budget (OMB) designated PSC as the sole cognizant agency to perform annual statewide cost allocation plan reviews, to include establishing state departmental rates.
  • OMB designated PSC as one of only two cognizant agencies to negotiate indirect cost rates for colleges and universities receiving federal funding grants and contracts
  • HHS designated PSC as the sole cognizant agency to negotiate rate agreements with non-profit organizations receiving HHS grants and contracts funding
  • PSC reviews and negotiates over 2,700 rate agreements annually for over 6,500 grantees
  • PSC negotiates approximately $70 million annually in cash refunds for the government
  • PSC helps the government avoid more than $1 billion annually by negotiating reduced indirect cost rates
  • PSC recently received the HHS Secretary's Award for Meritorious Service to acknowledge tremendous efforts in support of the government-wide grants reform.

Offered To

All federal agencies


Arif "Mak" Karim
(214) 767-3600
Darryl Mayes
(301) 492-4852

two business men meeting.

Download Fact Sheet

Indirect Cost Negotiations [PDF 557KB]

Cost Allocation Services

Cost Allocations Services Website