Federal glossary · Metric
NICRA (Negotiated Indirect Cost Rate Agreement) is the agreement between an organization and its cognizant federal agency establishing indirect cost rates. Used for grants and cost-type contracts.
Reference record · Sources: 2 CFR 200 · Verified Jul 2, 2026 · Covers definition, governing source
Negotiated Indirect Cost Rate Agreement
Also known as
NICRA (Negotiated Indirect Cost Rate Agreement) is the agreement between an organization and its cognizant federal agency establishing indirect cost rates. Used for grants and cost-type contracts.
(Negotiated Indirect Cost Rate Agreement) is a metric concept federal contractors and grant writers run into across solicitations, regulations, and award filings
NICRA is a measurement used in federal contract evaluation, source selection, oversight, or performance management. Understanding NICRA matters because evaluators use metrics like it to compare proposals quantitatively, score past performance, set award-fee outcomes, and decide who gets the next option year. Contractors who track how NICRA is calculated — and what target values look like in their NAICS or service area — write proposals that are concrete and defensible instead of generic and easily dismissed. NICRA also has implications for contract administration: getting the calculation methodology wrong post-award is a common source of disputes and contracting-officer modifications. Pair NICRA with the related metrics above to see how the federal government composes evaluation criteria into source-selection narratives.
Meaning in practice
NICRA is a measure used to score, compare, or track government activity.
Where you’ll see it
You will see it in evaluation criteria, dashboards, scorecards, reports, and oversight reviews.
Common confusion
People often confuse the metric with the threshold or decision rule attached to it.
What to do next
Check how the metric is calculated before you compare records or opportunities.
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Get notified when usage of NICRA changes in contracts or guidance.
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