Indirect Costs

defines indirect costs as “the cost of administering a state or federally funded program and includes a cost of providing a statewide support service. The term does not include the actual costs of the program.” “Support service” as used in the code includes accounting, auditing, budgeting, centralized purchasing and legal services.
The language used in TxDOT’s AFAs is closely aligned with the Texas Government Code by using the terms “direct” and “indirect” costs to differentiate between costs incurred by providing a statewide support service (indirect) and the actual costs of the program (direct).
When federal funding is being utilized in a project, and set forth additional provisions that should be considered regarding the use of negotiated rates in determining indirect costs as well as the utilization of a de minimus rate for LGs that have received less than $35 million in federal awards.