IHS CSC Updates: Workgroup Tasks, Appropriations and Litigation Steve Osborne, Hobbs Strauss Rebecca Patterson, Sonosky Chambers April 23, 2018

CSC Workgroup Updates Dec 2017: IHS unilateral rescission of policy duplication provisions (§ 6-3.2E(3)) March 2018 Meeting--address duplication Additional options besides 97/3 split Make clear a Tribe can renegotiate a previously-negotiated offset Indirect-type costs and duplication

CSC Workgroup Next Steps Tribal consultation on policy revisions April 13, 2018 DTLL Comments due May 18, 2018 Workgroup proposal AND 2 other IHS-only options Small workgroup to address indirect-type costs

CSC Appropriations FY 2018 Amounts Separate appropriation “such sums as may be necessary” Estimate (Managers’ Report): $717,970,000 Separate appropriation Committee language on grants: Committees “encourage” IHS to transfer funds through ISDEAA agreements rather than separate grants, to “ensure that associated administrative costs will be covered through the contract support cost process.” Examples: Substance Abuse and Suicide Prevention Domestic Violence Prevention Zero Suicide Initiative

CSC Appropriations FY 2019 Budget Amounts “such sums as may be necessary” Estimate (OMB, An American Budget): $797,000,000 Separate appropriation Carryover clause proposed Notwithstanding clause proposed

Past-Year CSC Claims Mostly settled Contract Disputes Act process Six-year statute of limitations: FY 2012 still viable Full funding since FY 2014, so claims decreasing

Recent Litigation: the Sage case Two major issues: 1) Whether a Tribe can recover CSC on the third-party revenue funded portion of its health program 2) Duplication: whether the statute refers to duplicating amounts or duplicating categories of funding District court found in favor of the Tribe IHS appeal to 10th Circuit

Recent Litigation: the Seminole Case Tribe proposes to allocate 98.93% of program funding to salaries, wages, and fringe IHS imposes 80% cap on allocation of appropriated dollars to salaries/fringe (IHS expends 71% on salaries/fringe in direct service) IHS argues Tribe’s reallocation authority under ISDEAA, for purpose of CSC calculation, is limited by “reasonableness” requirement Complaint just filed; decision not likely until late this year

Other IHS CSC Issues CSC on CHEF CSC on grants (SASP, DVPP) Sub-workgroup for developing estimates for budgeting purposes Review and standardize training for start-up cost negotiators Update CSC Negotiation Template