Case-by-Case Fees for Solid Minerals Programs: Computing Labor Costs and Fiscal_Year 2007 Indirect Cost Rate

UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C.  20240
http://www.blm.gov
June 18, 2007

In Reply Refer To:
3400/3500/3600/3800 (320) P

EMS TRANSMISSION 06/22/2007
Instruction Memorandum No. 2006-106 Change 1  
Expires:  09/30/2008

To:                        All Field Offices

From:                    Assistant Director, Minerals, Realty and Resource Protection

Subject:                Case-by-Case Fees for Solid Minerals Programs: Computing Labor Costs and Fiscal Year 2007 Indirect Cost Rate

Program Areas:  Coal, Non-Energy Leasable Minerals, Mineral Materials and Mining Law Administration Program.

Purpose:  To provide updated guidance on case-by-case fees covering the Bureau of Land Management’s (BLM) costs of processing documents relating to its solid minerals programs.

Policy:  This Instruction Memorandum (IM) identifies revisions to the guidance set forth in IM 2006-106, dated March 13, 2006.

Actions Required:  As stated in IM 2006-106, written cost estimates for processing documents with case-by-case fees should include all actual costs the BLM expects to incur in processing a document.  Actual costs are the sum of both direct and indirect costs.

Estimating and Computing Labor Costs:

When preparing a written fee estimate of processing costs for a document/action subject to case-by-case processing, direct costs associated with a BLM employee’s labor should not be based strictly on a “flat” hourly rate according to the GS salary schedule (as was stated in IM 2006-106), but should also include the cost of benefits.  Information on hourly rates including benefits is available from the BLM State or Field Office budget personnel.

Fiscal Year 2007 Indirect Cost Rate:

As stated in IM 2006-106, indirect costs are estimated by multiplying the projected direct cost by the indirect cost ratio.  The indirect cost ratio for Fiscal Year (FY) 2007 is 19 percent.  In transmitting the indirect cost rate for FY 2007, IM 2007-087 (dated March 15, 2007), stated that this rate will be in effect from October 1, 2006 through September 30, 2007, and is to be applied to Subactivity 5110. 

Timeframe:  The guidance contained in this IM is effective immediately.

Budget Impact:  The indirect cost rate set forth in this IM updates the rate stated in IM 2006-106.   

Background:  Effective November 7, 2005, a final rule amended the BLM’s minerals regulations to increase certain fees and to impose new fees to cover the BLM’s cost of processing documents relating to the minerals programs.  The final rule provided for case-by-case fees as well as fixed fees. 

Manuals/Handbook Section Affected:  General policy guidance relating to cost recovery will be incorporated into appropriate program handbooks and manuals for solid minerals programs.

Coordination:  Guidance contained in this IM has been reviewed by staff from the Office of the Solicitor and the Washington Office (WO) Budget Office.

Contacts:  Please address any questions concerning this IM to Mary Linda Ponticelli at (202-452-5083), Solid Minerals Division (WO-320).

Signed by:                                                          Authenticated by:
Douglas J. Burger                                                Robert M. Williams
Acting, Assistant Director                                   Division of IRM Governance,WO-560
Minerals, Realty and Resource Protection