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

2. CSC Workgroup Updates
Dec 2017: IHS unilateral rescission of policy duplication provisions (§ E(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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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