Indirect costs of nonprofit city service contractors

Summary

This bill would require the City Chief Procurement Officer and the Director of Management and Budget, or another officer or agency head designated by the mayor, to develop a methodology for calculating indirect costs, such as facilities or administrative costs, associated with providing human services pursuant to city contracts. The methodology would provide for a minimum indirect cost reimbursement rate of 20 percent. Human service providers may alternatively choose to use a federally approved “NICRA” rate, or another indirect cost rate issued by an approved entity. The Office of Not-for-profit Organizations Services would be required to post the relevant methodology and related materials on their website. Contracting agencies would be required to reimburse indirect costs incurred by covered city service contractors in accordance with the required methodology.

Summary from NYC Council (Legistar). How we handle summaries

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Where it stands

Assigned to a committee for review.

Committee on Contracts

Full history

1. Jan 29, 2026

   Introduced

   This Introduction was Introduced by Council

   NYC Council

2. Jan 29, 2026

   Referred to committee

   This Introduction was Referred to Comm by Council to the Committee on Contracts

   NYC Council