RE: Your indirect cost rate

Clean, defensible indirect cost rate proposals — built by the person who used to review them.

A decade negotiating and auditing federal indirect cost rates, now on your side of the table. Packages a reviewer can follow in minutes, not days.

FULL COST RECOVERY · NEGOTIATED & DEFENSIBLE · NA NEEDICR.COM
Experience
10 yrs, Federal Negotiator & Auditor
Agreements negotiated
Up to $3 billion
Rulebooks
2 CFR 200 · FAR 31
Sectors
Nonprofit · Commercial · Gov
Sec. 1 — Services

Four ways we put a defensible rate to work for you.

Whether you've never had a negotiated rate or you're tired of leaving recovery on the table, our indirect cost rate consulting comes down to the same work: get the numbers right, document them so they hold, and build the case you take to your cognizant agency.

1.1Indirect cost rate proposalsPreparation
1.2Rate negotiation supportNegotiation
1.3Audit readiness & reviewDefense
1.4Training courses & materialsTraining
1.5Fee schedulePricing
1.1

Indirect cost rate proposals

Full proposal preparation — cost pools, allocation bases, and the schedules your cognizant agency expects. We assemble the package so it's reviewer-ready the first time, not after three rounds of questions. Fixed fee: most first-time proposals run $14,000 to $22,000; see the fee schedule.

1.2

Rate negotiation support

We prepare every response through your cognizant agency's review. Because we've been the negotiator, we know which adjustments hold up, which costs draw scrutiny, and how to keep your provisional and final rates consistent. Support through the negotiation is included with every proposal we prepare.

1.3

Audit readiness & review

Already have a NICRA or de minimis election? We pressure-test your allocation methodology, unallowable cost treatment, and documentation before an auditor does — and fix what won't survive review.

1.4

Training courses & materials

Practical training for finance and program staff — cost principles, allowable vs. unallowable costs, MTDC, and the rate types that come up most: provisional, final, predetermined, and fixed with carry-forward. Live workshops or materials your team keeps.

Sec. 1.5 — Fee schedule

Fixed fees, published.

Never hourly. Start with a free consultation. If a negotiated rate makes sense, scoping puts your exact proposal fee in writing before you commit to the proposal.

Rate scoping & fixed quote$2,500The first step for a full proposal. We review your records, estimate your rate, and quote the proposal fee in writing. Credited in full toward the proposal if you sign within 60 days of the quote.
First-time proposal$14,000–$22,000Typical range. Full preparation, the cost policy statement, and support through the proposal's negotiation with your cognizant agency.
Renewal proposal$5,000–$9,000Typical range. A renewal or annual true-up of an existing rate, including support through its negotiation.
Negotiation support$3,000One negotiation cycle, meaning your cognizant agency's review of one submitted proposal, for a proposal you prepared yourself: we prepare every response to the agency's questions.
Proposal review$2,500You draft, we check: one full review plus a re-review of the corrected draft.
Cost policy statement$2,000For organizations preparing their own proposal. Included in a full first-time proposal.
Staff training$4,500 first dayA one-day live remote workshop for finance and program staff; half day $2,500, extra days discounted. On-site $6,500 a day plus travel, billed once per trip.
Grant-Ready NICRA Kit$149Do it yourself: the guide, self-computing rate workbook, cost policy statement template, and audit checklist.

Engagements with multiple rates, FAR Part 31 work, or more than $50 million in expenditures, and work outside the agreed scope such as books cleanup, are quoted as a fixed fee in writing before any work starts. You sign and correspond with your cognizant agency; we prepare every document and response.

Sec. 2 — The real problem

Negotiations rarely drag on because the rate is unreasonable.

They drag on because the proposal is overloaded, overly complex, and structured in a way that makes review harder than it should be. We've watched negotiations stretch by months for exactly that reason — and it's avoidable.

2.1

Data overload

Dumping every possible schedule and narrative at once buries the few items that actually drive the rate decision.

2.2

Structure that hides the story

Unnecessary sections and inconsistent roll-ups make it hard for the reviewer to trace the logic from costs to pools to bases to rate.

2.3

Rework and delay

When the reviewer can't quickly validate the "why," they ask for more — extending negotiation and consuming your team's bandwidth.

2.4

Higher cost, more risk

Complex submissions cost more to build and defend — and they make it easier for definitions to be misread, turning small ambiguities into avoidable disputes.

Clear traceability beats volume. The reviewer should be able to follow the logic in minutes, not days. A tighter package reduces questions, reduces cost, and shortens the cycle.

Self-service Wondering what your gap is? Start from your Form 990 → Or score your grant readiness in 12 questions → Or do it yourself: the $149 Grant-Ready kit →

Sec. 3 — Who we serve

Three sectors, two rulebooks, one goal: full, defensible recovery.

The cost principles that govern your rate depend on what kind of organization you are. We work in all of them.

2 CFR 200, Subpart E

Non-Profit Organizations

  • First-time negotiated indirect cost rate (NICRA) proposals
  • De minimis (15% MTDC) vs. negotiated rate analysis
  • Indirect cost recovery on federal grants & awards
  • Allowable vs. unallowable cost reviews
FAR Part 31

Government Contractors

  • Overhead, fringe, and G&A rate structures
  • Final & provisional billing rates
  • Incurred cost submissions & rate true-ups
  • FAR 31.205 unallowable cost screening
2 CFR 200, Subpart E

State, Local & Tribal

  • Department & statewide indirect cost rate proposals
  • Provisional, final, predetermined & fixed-with-carry-forward rates
  • Rate true-ups and carry-forward reconciliation
  • Every response through your cognizant agency's review
Sec. 4 — Process

A straight line from "no rate" to "negotiated and defensible."

4.1

Scope

We review your financials, awards, and current treatment to find the right rate structure and what you're recovering today, then quote the proposal in writing. Scoping is $2,500, credited in full toward the proposal if you sign within 60 days of the quote.

4.2

Build

We construct the cost pools, allocation bases, and schedules — and document the methodology so it holds up to review.

4.3

Negotiate

You submit to your cognizant agency and sign. We prepare every response to the reviewer's questions through to the rate agreement.

4.4

Sustain

We keep provisional and final rates accurate year to year and train your team to maintain the rate themselves.

Sec. 5 — About the negotiator

You're hiring the person who used to review proposals like yours.

Most consultants learned indirect cost rates from the outside. I spent a decade inside the process — negotiating rates and auditing proposals for the federal government, on agreements up to $3 billion. I know exactly where reviewers push back, which costs trigger questions, and what documentation actually survives an audit.

That experience changes the work. A proposal shouldn't go in on hope. I build it the way I'd have wanted to receive it — clean, supported, and ready to negotiate.

  • Former federal rate negotiator and auditor
  • Fluent in both 2 CFR 200 and FAR Part 31
  • Proposals built reviewer-ready, not draft-ready
  • Provisional-to-final rate consistency built in
  • Training so your team isn't dependent forever
T. Pisarenko
Tony Pisarenko · NICRA Advisors
USMC veteran · former federal rate negotiator & auditor

Book a free 30-minute consultation →

Tony Pisarenko, founder of NICRA Advisors and former federal indirect cost rate negotiator and auditor
Fig. 1 — T. Pisarenko
Former federal rate negotiator & auditor
Sec. 6 — Common questions

What organizations ask before they start.

Should I just take the 15% de minimis rate instead of negotiating?

Sometimes — it's simple and requires no documentation. But for many organizations the de minimis rate (15% of modified total direct costs) recovers far less than a negotiated rate would. We run the comparison so the decision is based on your actual numbers, not a default.

We've never had a negotiated rate. Where do we even begin?

That's the most common starting point. We scope your financials and awards, determine your cognizant agency, and build the first proposal from scratch — then prepare every response through the negotiation to your rate agreement.

What's the difference between 2 CFR 200 and FAR Part 31?

They're the two cost-principle frameworks. Non-profits and state, local, and tribal governments fall under 2 CFR 200, Subpart E. Commercial and for-profit contractors fall under FAR Part 31. The rate mechanics differ in each — we work in both.

Do you only prepare proposals, or do you train our team too?

Both. We prepare proposals and every response through their negotiation, and we offer training courses and materials so your finance and program staff understand cost principles, allowable costs, and rate mechanics well enough to maintain the rate going forward.

Can you review a rate or NICRA we already have?

Yes. We pressure-test existing rates, allocation methodologies, and documentation for audit risk — and fix what won't hold up before a reviewer finds it.

What does an engagement cost?

Fixed fee, never open-ended hourly billing. Most first-time proposals run $14,000 to $22,000, including the cost policy statement and support through the negotiation, and renewal proposals run $5,000 to $9,000. The first step is scoping, at $2,500: we review your records, estimate your rate, and quote the proposal fee in writing, and the $2,500 is credited in full if you sign within 60 days of the quote. The full fee schedule is under Services. In most cases the de minimis vs. negotiated comparison makes the economics clear before you sign for the proposal.

How long until we have a negotiated rate?

Building a reviewer-ready proposal typically takes a few weeks once your records are in hand. The negotiation itself runs on your cognizant agency's clock and can take months — which is exactly why the package matters: a proposal the reviewer can trace quickly is the single biggest factor you control.

Get started

Whether it's your first proposal or your last negotiation dragged on — the package decides how it goes.

Never had a negotiated rate? We build the first proposal from scratch and prepare every response through the negotiation to your rate agreement. Tired of rounds of reviewer questions? We simplify the package, improve traceability, and shorten the cycle.