In February 2019, the City of New York adopted the Health and Human Services (HHS) Cost Policies and Procedures Manual (Cost Manual) to standardize cost allocation practices for HHS contracts and Indirect Cost Rate (ICR) calculations. The Cost Manual is intended to be a living document that is updated from time to time.
The Fiscal Year (FY) 2020 Adopted Budget established an ICR Funding Initiative based on the Cost Manual, managed by the Office of Management and Budget and Mayor's Office of Contract Services through the City Implementation Team (CIT). The initiative is intended to make it easier for nonprofits to do business with the City, as it acknowledges and pays for critical indirect costs to deliver human services.
Please see the Background section below for a history of the Initiative. The CIT kept the sector informed of Initiative updates through regular communications, which are contained in the Archive of Email Communications section. The Archive of Resources also contains information and job aids that the CIT shared with the sector for assistance in completing important milestones.
The FY 2025 ICR Application Process will open January 2024 for eligible providers. FY 2025 eligible providers are organizations that either (i) have an FY22 Accepted ICR that will be expiring on June 30, 2024, or (ii) do not yet have an Accepted ICR because the organization entered City human services contracting after the last application window.
If your organization falls under condition (i), has an expiring FY22 ICR, you will receive an email from the CIT providing next steps and more information. If your organization does not have an Accepted ICR and falls under condition (ii), please email us at CIT@mocs.nyc.gov to confirm eligibility and next steps.
Organizations have three possible entryways:
The FY 2025 ICR Application Process will be available through May 1, 2024.
If your organization is eligible to apply for a FY25 Accepted ICR and chooses not to, it will default to a 10% De Minimis ICR, effective July 1, 2024.
The FY 2024 ICR Application Process was available from January 11, 2023 - May 1, 2023. Providers that received an Accepted ICR during this period have an ICR valid FY 2024 through FY 2026. If your organization was eligible to apply and did not receive a FY24 Accepted ICR, it defaulted to a 10% De Minimis ICR, effective July 1, 2023.
The City will continue the ICR application process each year for expiring ICRs and new providers. The application process will open every January and close in April, to align with the contract budgeting process.
Upon application approval, the CIT will upload confirmation of the Accepted ICR to your organization’s PASSPort profile. Providers can see their Accepted ICR in PASSPort by visiting their Vendor Profile and clicking Documentation, then scrolling down to Miscellaneous Documents. The "document type" label will reflect your organization's ICR entryway. Clicking the document will allow your organization to see your Accepted ICR, your verification documentation, and the ICR validity date. Please note that if your organization defaulted to a 10% De Minimis ICR, there will be no available documentation.
Submit an inquiry to the MOCS Service Desk for questions about PASSPort.
We have received a number of questions regarding the use of budget modifications to fund Accepted ICRs. We offer the following tips and information:
Please see the following instructional materials on budget modifications:
Effective immediately, providers with an Accepted ICR, as defined by the Cost Manual, may use their Accepted ICRs in RFP proposals. The following language will now be standard in future Health and Human Services RFPs, and released status RFPs in PASSPort will be amended to include this new language. If an RFP is missing this language, please notify the designated agency contact.
"All price and budget proposals should be prepared in accordance with The City of New York's Health and Human Service Cost Policies and Procedures Manual (Cost Manual). For the purpose of responding to this solicitation, proposers may budget up to an Accepted Indirect Cost Rate or use the 10% de minimis Indirect Cost Rate."
Please contact the solicitation's issuing agency with questions about content included in the RFP or your organization's proposal.
Need help or have a question about PASSPort? Submit an inquiry to the MOCS Service Desk!
New York City was the first big city in the country to make this investment. Today, providers can receive an Accepted ICR from the City of New York based on a 10% De Minimis policy, a federal NICRA, or an Independent Accountant's Report that validates an ICR greater than 10%. Details can be found in the Cost Manual.
The CIT established a Provider Work Group, with participation from City Council Finance, to advise on the rollout and implementation of the Funding Initiative. The details of the ICR Funding Initiative were announced on October 7, 2019, with claiming for indirect cost rates and funding opening on November 18, 2019, and closing on December 31, 2020. To provide greater access for smaller nonprofits, the Provider Work Group set forth a Conditional ICR option that offered organizations with ICRs greater than 10% more time to work towards an established ICR on the condition that they submit their documentation by the Initiative closing date.
Among these resources is the Delta Template, which served as a basis for providers to calculate the additional ICR funding for each of their contracts. In total, 361 organizations successfully completed the process for ICR funding to receive Accepted ICRs and annual baselined funding of $94 million. For providers with Delta Templates approved in Fiscal Years 2020 or 2021, the City issued ICR amendments through PASSPort, the City’s Procurement and Sourcing Solutions Portal.
Reports and Press
Over the course of this initiative, the CIT sent weekly emails to the sector. In total, more than 60 emails were sent between September 2019 and December 2020. Please find below an archive of emails.
Fiscal Year 2023
Fiscal Year 2022
Fiscal Year 2021
Fiscal Year 2020